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What is so specific with Middle-East and North-African pattern of growth and structural change? A quantitative comparative analysis

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  • Dalila NICET-CHENAF
  • Eric ROUGIER

Abstract

This paper quantitatively compares Middle East and North African (MENA) countries’ growth patterns with those of a sample of middle-income countries. Three complementary sets of growth determinants are tested: accumulation, institutions and structural change. After having estimated the model on a sample of middle income countries, our comparative analysis shows that MENA economies sharply contrast with other middle income emerging economies with respect to two main dimensions: (1) the sectoral structure of production and (2) the institutional environment. The assumption of complementary effect of the accumulation, institutional and structural growth determinants is also tested. We show that the MENA pattern of growth exhibits structural weaknesses, like the combination of a low pace of structural change and high corruption levels, which may have hindered the expansion of highly productive job, and possibly bred massive discontent in the region.

Suggested Citation

  • Dalila NICET-CHENAF & Eric ROUGIER, 2014. "What is so specific with Middle-East and North-African pattern of growth and structural change? A quantitative comparative analysis," Cahiers du GREThA 2014-23, Groupe de Recherche en Economie Théorique et Appliquée(GREThA).
  • Handle: RePEc:grt:wpegrt:2014-23
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    File URL: http://cahiersdugretha.u-bordeaux4.fr/2014/2014-23.pdf
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    References listed on IDEAS

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    Cited by:

    1. Rougier, Eric, 2016. "“Fire in Cairo”: Authoritarian–Redistributive Social Contracts, Structural Change, and the Arab Spring," World Development, Elsevier, vol. 78(C), pages 148-171.
    2. Riana Razafimandimby Andrianjaka & Eric Rougier, 2017. "What difference does it make? Revue de littérature et analyse empirique des déterminants de la Trappe à Revenu Intermédiaire," Cahiers du GREThA 2017-16, Groupe de Recherche en Economie Théorique et Appliquée(GREThA).

    More about this item

    Keywords

    Economic growth; Structural change; Institutions; Corruption; Middle-East and North-Africa; Middle-income economies; Quantitative comparative analysis; Panel data; GMM estimation;

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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