Institutions and Economic Growth in the MENA Countries: An Empirical Investigation by Using Panel data model

Amrane Becherair

MPRA Paper from University Library of Munich, Germany

Abstract: This paper will investigate the impact of institution on economic growth rates in MENA nations, Using panel data model over the period 1995-2012. Within the framework of the neoclassical growth model, this study integrates a broad set of institutional variables such. Security of property rights, governance, political freedom and size of government are the indicators used in the study, facilitating identification of the most important institutions that account for the observed variations in economic growth rates among nations. We find that, The sign and significance of all of the variables are qualitatively similar to the results obtained by MRW (1992). We also find The human capital is highly significant at 99% with initial income and Investment Share in MENA countries. The Results indicate that the dummy variable for oil exporters is positive and significant, indicating that other things being equal, oil exporters would be expected to have higher economic growth rates in MENA Countries. Basic OLS results, as well as a variety of additional evidence, suggest that (a) security of property rights, is the most significant institutions that explain the variations in economic growth rates, (b) The significant and negative sign on the government consumption, indicating that smaller governments are "better" in MENA countries.

Keywords: MENA; Countries; –; Economic; Growth; –; Institutions-; Panel; Data; Model (search for similar items in EconPapers)
JEL-codes: C23 C87 O4 O43 O53 O55 (search for similar items in EconPapers)
Date: 2014-08-03, Revised 2014-08-04
New Economics Papers: this item is included in nep-ara, nep-cse, nep-fdg and nep-gro
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