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Institutions and Growth in the Arab and Middle Eastern Countries

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  • Georges Harb

    (Department of Economics, Notre Dame University (Louaize), Zouk Mosbeh, P.O. Box: 72, Zouk Mikael, Lebanon)

Abstract

We assess the impact of the quality of public institutions on economic growth during the period 1995-2013 in the Arab and Middle Eastern (AME) countries. We use a sample of 99 countries, of which 17 AME countries, and employ a dynamic panel approach that controls for unobserved heterogeneity, common shocks affecting the sample countries, and accounts for the endogeneity of the regressors. From a global standpoint, the impact of institutions on growth seems to be depending on the development level. From a regional perspective, the effect of institutions on economic outcome in the AME countries is found positive but insignificant. The prevalence of extractive industries could explain the insignificant effect of institutions on economic performance in some AME countries. In others, the insignificant result is likely to reflect shortages in technological readiness and inefficient resource-allocation policies

Suggested Citation

  • Georges Harb, 2017. "Institutions and Growth in the Arab and Middle Eastern Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 365-376.
    • Handle: RePEc:eco:journ1:2017-01-48
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    References listed on IDEAS

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    Cited by:

    1. R. M. Melnikov & K. K. Furmanov, 2020. "Evaluating of Impact of Provision of Infrastructure on the Economic Development of Russian Regions," Regional Research of Russia, Springer, vol. 10(4), pages 513-521, October.

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    More about this item

    Keywords

    Arab and Middle Eastern Countries; Growth; Institutions; Corruption; Dynamic Panel Estimation;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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