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The impacts of tourism, energy consumption and political instability on economic growth in the MENA countries

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Listed author(s):
  • Tang, Chor Foon
  • Abosedra, Salah

Abstract

Using panel data of 24 countries in the Middle East and North African (MENA) region from 2001 to 2009, the purpose of this study is to examine the impacts of tourism, energy consumption and political instability on economic growth within the neoclassical growth framework. To address the objective of this study, we utilise both the static panel data approach as well as the dynamic generalised method of moments (GMM) estimator to examine the impact of candidate variables. Our results show that energy consumption and tourism significantly contribute to the economic growth of countries in the MENA region. Hence, our study lends some support to the existence of the tourism-led growth and energy-led growth hypotheses in the region. In line with our expectation, our estimation results also reveal that political instability impedes the process of economic growth and development in the MENA region. Therefore, macroeconomic policies to promote expansion in tourism and energy consumption will directly stimulate economic growth. Additionally, efforts to help the region overcome its history of political instability would attract more international tourist arrivals and further invigorate economic growth.

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File URL: http://www.sciencedirect.com/science/article/pii/S0301421514000093
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Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 68 (2014)
Issue (Month): C ()
Pages: 458-464

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Handle: RePEc:eee:enepol:v:68:y:2014:i:c:p:458-464
DOI: 10.1016/j.enpol.2014.01.004
Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

Keywords: Energy consumption; MENA; Tourism;

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Cited by:

  1. Smyth, Russell & Narayan, Paresh Kumar, 2015. "Applied econometrics and implications for energy economics research," Energy Economics, Elsevier, vol. 50(C), pages 351-358.
  2. Tammuz Alraheb & Amine Tarazi, 2016. "Local Versus International Crises, Foreign Subsidiaries and Bank Stability: Evidence from the MENA Region," Working Papers 1045, Economic Research Forum, revised 09 Jan 2016.
  3. Hasanov, Fakhri & Bulut, Cihan & Suleymanov, Elchin, 2017. "Review of energy-growth nexus: A panel analysis for ten Eurasian oil exporting countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 369-386.
  4. Adams, Samuel & Klobodu, Edem Kwame Mensah & Opoku, Eric Evans Osei, 2016. "Energy consumption, political regime and economic growth in sub-Saharan Africa," Energy Policy, Elsevier, vol. 96(C), pages 36-44.
  5. Anis Omri & Mohamed Shahbaz & Anissa Chaibi & Christophe Rault, 2015. "A panel analysis of the effects of oil consumption, international tourism, environmental quality and political instability on economic growth in MENA region," Working Papers 2015-613, Department of Research, Ipag Business School.
  6. Bennouna, Amin & El Hebil, Charaf, 2016. "Energy needs for Morocco 2030, as obtained from GDP-energy and GDP-energy intensity correlations," Energy Policy, Elsevier, vol. 88(C), pages 45-55.
  7. Tang, Chor Foon & Aviral Kumar, Tiwari & Shahbaz, Muhammad, 2016. "Dynamic Inter-relationships among tourism, economic growth and energy consumption in India," MPRA Paper 69848, University Library of Munich, Germany, revised 04 Mar 2016.
  8. Ronald Kumar & Nanthakumar Loganathan & Arvind Patel & Radika Kumar, 2015. "Nexus between tourism earnings and economic growth: a study of Malaysia," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(3), pages 1101-1120, May.
  9. Uddin, Md Akther & Masih, Mansur, 2016. "War and peace: why is political stability pivotal for economic growth of OIC countries?," MPRA Paper 71678, University Library of Munich, Germany.

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