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The Impact of Governance on Economic Growth in Middle East and North Africa: An Econometric Analysis Using Panel Data

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  • Hamid Nounou
  • Mohamed Karim

Abstract

The following research examines the relationship between governance and economic growth. The study aims to assess the positive or negative effects of governance on economic growth in a sample of 13 countries within the Middle East and North Africa (MENA) region over the period 2002-2022, employing panel data estimation techniques. The results indicate that the synthetic governance index has a positive but statistically insignificant effect on economic growth in the region. Additionally, human capital is found to have a significant and positive impact on national economic growth. Conversely, trade openness, investment, and inflation rate negatively affect economic growth.

Suggested Citation

  • Hamid Nounou & Mohamed Karim, 2025. "The Impact of Governance on Economic Growth in Middle East and North Africa: An Econometric Analysis Using Panel Data," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 17(3), pages 1-95, March.
    • Handle: RePEc:ibn:ijefaa:v:17:y:2025:i:3:p:95
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    References listed on IDEAS

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    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Helliwell, John F., 1994. "Empirical Linkages Between Democracy and Economic Growth," British Journal of Political Science, Cambridge University Press, vol. 24(2), pages 225-248, April.
    3. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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