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A panel analysis of the effects of oil consumption, international tourism, environmental quality and political instability on economic growth in MENA region

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  • Anis Omri
  • Mohamed Shahbaz
  • Anissa Chaibi
  • Christophe Rault

Abstract

The aim of this study is to investigate whether oil consumption, international tourism, environmental quality and political instabilty affect economic growth in 18 MENA countries over the period 1995- 2011using both the static (POLS, FE and RE) and dynamic (Diff-GMM and Sys-GMM) panel data approaches. The empirical results show that the increases in oil consumption and international tourist arrivals are the major drivers of economic growth in MENA countries indicating the presence of energy-led-growth (ELG) and tourism-led-growth (TLG) hypotheses in these countries. We also find that economic growth in MENA countries reacts negatively to the environmental degradation and political instability. These empirical insights are of particular interest to policymakers as they help build sound economic policies to sustain economic development.

Suggested Citation

  • 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.
    • Handle: RePEc:ipg:wpaper:2015-613
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    2. Zaman, Khalid & Shahbaz, Muhammad & Loganathan, Nanthakumar & Raza, Syed Ali, 2016. "Tourism development, energy consumption and Environmental Kuznets Curve: Trivariate analysis in the panel of developed and developing countries," Tourism Management, Elsevier, vol. 54(C), pages 275-283.
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    4. Abdelmohsen A. Nassani & Khalid Zaman & Abdullah Mohammed Aldakhil & Muhammad Moinuddin Qazi Abro, 2017. "War economy and pleasure: assessing the effects of military expenditure on tourism growth," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1733-1754, July.

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    Keywords

    Economic growth; Static and dynamic panel data; MENA countries.;
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