scholarly journals The Indirect Effect of Democracy on Economic Growth in the MENA Region (1990–2015)

2018 ◽  
Author(s):  
Shereen Nosier ◽  
Aya El-Karamani
Keyword(s):  
Economic Growth ◽  
Indirect Effect ◽  
Capital Accumulation ◽  
Trade Openness ◽  
Physical Capital ◽  
Mena Region ◽  
Poor Countries ◽  
Mena Countries ◽  
The One ◽  
Rich Countries

This paper examines the indirect effect of democracy on economic growth using a dataset of 17 MENA countries from 1990 to 2015. Democracy is assumed to affect growth through a series of channels: education, health, physical capital accumulation per labor, government consumption, and trade openness. A system of six simultaneous equations, 3SLS, is used to estimate the effect of democracy on growth through these channels. For further analysis, the countries are classified into groups according to the democratic status on the one side, and the level of income on the other. The results indicate that democracy enhances growth through its positive effect on health in all classifications of countries within the MENA region. However, the effect of democracy on growth through education and physical capital/labor is non-monotonic. Democracy always hinders growth through government size and trade openness. Once all of these indirect effects are accounted for, the overall effect of democracy on growth is negative in less democratic countries and poor countries, but positive in more democratic countries and rich countries.

scholarly journals The Indirect Effect of Democracy on Economic Growth in the MENA Region (1990–2015)

Economies ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 61 ◽  
Author(s):  
Shereen Nosier ◽  
Aya El-Karamani
Keyword(s):  
Economic Growth ◽  
Indirect Effect ◽  
Capital Accumulation ◽  
Trade Openness ◽  
Physical Capital ◽  
Mena Region ◽  
Poor Countries ◽  
Mena Countries ◽  
The One ◽  
Rich Countries

This paper examines the indirect effect of democracy on economic growth using a dataset of 17 MENA countries from 1990 to 2015. Democracy is assumed to affect growth through a series of channels: education, health, physical capital accumulation per labor, government consumption, and trade openness. A system of six simultaneous equations using 3SLS, is used to estimate the effect of democracy on growth through these channels. For further analysis, the countries are classified into groups according to the democratic status on the one side, and the level of income on the other. The results indicate that democracy enhances growth through its positive effect on health in all classifications of countries within the MENA region. However, the effect of democracy on growth through education and physical capital/labor is non-monotonic. Democracy hinders growth through government size and trade openness. Once all of these indirect effects are accounted for, the overall effect of democracy on growth is negative in less democratic countries and poor countries, but positive in more democratic countries and rich countries.

scholarly journals Energy consumption, CO² emissions and economic growth in MENA countries

2020 ◽  
Vol 11 (1) ◽  
pp. 133-150
Author(s):  
Ali Maalej ◽  
Alexandre Cabagnols
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Co2 Reduction ◽  
Poor Countries ◽  
Mena Countries ◽  
Significant Relationships ◽  
Growth Energy ◽  
Rich Countries ◽  
The Impact ◽  
The Relationship

This study investigates the relationship between economic growth, final consumption, investment, energy use and CO² emissions in two groups of Middle East and North Africa (MENA) countries: Oil Poor Countries (OPC) and Oil Rich Countries (ORC). It is assumed and verified that the structural relationship between GDP growth, energy use and CO² emissions is different in these two groups of countries. FGLS panel estimations were carried out over the period 1974–2014. In ORC, no significant relationships are observed between energy use and GDP, whereas CO² emissions and GDP are positively linked. In OPC, there are opposite connections: a positive link between GDP and energy use, whereas the impact of CO² emissions on GDP tends to be negative. In both groups of countries, a positive and bi-directional link is observed between energy use and CO² emissions. The strength of this link is twice bigger in OPC than in ORC. This indicates that CO2 reduction policies conducted through energy use control (quantitative and qualitative) will have higher effect in OPC than in ORC. This also shows that the relationships between economic growth, energy use and CO² emissions differ noticeably and structurally between OPC and ORC. These results provide new insights into the opportunities and threats faced by CO2 reduction policies in OPCs and ORCs.

scholarly journals Environmental Performance and Economic Growth in Middle East and North Africa Countries

2019 ◽  
Vol 9 (24) ◽  
Author(s):  
Hichem Dkhili
Keyword(s):  
Economic Growth ◽  
Middle East ◽  
North Africa ◽  
Environmental Performance ◽  
Middle Eastern ◽  
Smooth Transition ◽  
African Countries ◽  
Mena Region ◽  
Mena Countries ◽  
The Impact

Background. Studies on environmental performance/quality and economic growth show inconclusive results. Objective. The aim of the present study is to assess the non-linear relationship between environmental performance and economic growth in the Middle East and North Africa (MENA) region from 2002–2018. Methods. A sample of fourteen (14) MENA countries was used in the present analysis. However, due to important differences between countries in this region, the whole sample was divided into two sub-samples; nine Middle Eastern countries (MEAS) and five North African countries (NAF). We performed the panel smooth transition regression model as an econometric approach. Discussion. Empirical results indicate a threshold effect in the environmental performance and economic growth relationship. The threshold value differs from one group of countries to another. More specifically, we found that the impact of environmental performance and economic growth is positive and significant only if a certain threshold level has been attained. Until then, the effect remains negative. Conclusions. The findings of the present study are of great importance for policymakers since they determine the optimal level of environmental performance required to act positively on the level of economic growth. MENA countries should seek to improve their environmental performance index in order to grow output. Competing Interests. The authors declare no competing financial interests.

Economic Growth and Human Development since 1820

2018 ◽  
pp. 22-54
Author(s):  
Şevket Pamuk
Keyword(s):  
Economic Growth ◽  
World War Ii ◽  
Human Development ◽  
Industrial Revolution ◽  
Physical Capital ◽  
Modern Economic Growth ◽  
Education Levels ◽  
Modern Economic ◽  
Proximate Causes ◽  
The One

This chapter examines the trends in economic growth and human development in Turkey during the last two centuries. Economists have learned a great deal about modern economic growth since the end of World War II. The large and growing literature has emphasized that increases in productivity, achieved through technological progress on the one hand, and increases in per capita physical capital and education levels, on the other, were the most important factors contributing to economic growth. In addition, the labor force is much better educated than in 1820. In short, technological change and higher rates of investment in both physical and human capital are seen today as the leading proximate causes of economic growth since the Industrial Revolution.

Introduction and Preliminaries

2016 ◽  
Author(s):  
Francesco Caselli
Keyword(s):  
Technical Change ◽  
Relative Efficiency ◽  
Natural Capital ◽  
Physical Capital ◽  
Mineral Deposits ◽  
Unskilled Labor ◽  
Poor Countries ◽  
Absolute Efficiency ◽  
Rich Countries ◽  
Analytical Tools

This book examines how the mode of production, or production technology, varies systematically across countries, depending on their endowments of different factors of production. Using aggregate production functions as analytical tools, the book shows that technology differences and technical change are factor biased: they change not only the overall efficiency with which a country exploits its bundle of productive inputs, but also the relative efficiency with which different factors contribute to production. It argues that the efficiency with which skilled labor is used relative to unskilled labor is greater in richer countries than in poorer countries. It also explains why the efficiency with which reproducible capital (equipment and structure) is used relative to natural capital (mineral deposits, land, timber, etc.) is higher in rich countries, and the absolute efficiency with which physical capital is used appears to be not lower, and may even be higher, in poor countries.

The Relation between Money and Happiness in MENA Countries

2016 ◽  
pp. 111-124
Author(s):  
Hilal Yıldız
Keyword(s):  
Economic Growth ◽  
Empirical Analysis ◽  
Economic Performance ◽  
Well Being ◽  
Cultural Performance ◽  
Mena Region ◽  
Mena Countries ◽  
Crucial Question ◽  
The People ◽  
The Relationship

Even though economic growth plays very important role in development, governments stressed the importance of happiness now. The crucial question is that what exactly is the relationship between happiness and money? Or, what can determine happiness? In recent years, the human well-being of its people has been accepted as a new economic inequalities measure. Not only economic performance of the country but also social, political and cultural performance of the country has been accepted as an indicator of better life of the people. Questions which will be discussed are thinking whether or not economic growth plays a major role in happiness and how the relation between economic growth and happiness. The purpose of this chapter is to investigate the relationship between economic growth and happiness in the MENA Region using an empirical analysis.

scholarly journals Financial Development and Economic Growth in ASEAN-5 Countries

2018 ◽  
Vol 20 (1) ◽  
pp. 57-71 ◽  
Author(s):  
Chinnasamy Agamudai Nambhi Malarvizhi ◽  
Yashar Zeynali ◽  
Abdullah Al Mamun ◽  
Ghazali Bin Ahmad
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Economic Efficiency ◽  
Capital Accumulation ◽  
Physical Capital ◽  
Significant Positive Effect ◽  
Domestic Investment ◽  
The Relationship ◽  
Physical Capital Accumulation ◽  
Positive Effect

This article explores the relationship between financial sector development and economic growth, using a sample of ASEAN-5 countries (Malaysia, Indonesia, Singapore, Thailand and Philippines) from 1980 to 2011. More specifically, this study investigates whether higher levels of financial development (FD) are significantly and robustly correlated with faster current and future rates of economic growth, physical capital accumulation and economic efficiency improvements. Findings of this study revealed that FD has a significant positive effect on economic growth. However, the estimated models show that the influence of FD, as a determinant for economic growth of ASEAN-5 countries, is less than that of domestic investment and export.

Does Aid Spur Economic Growth?

2016 ◽  
Vol 1 (1) ◽  
pp. 47
Author(s):  
Musa Talba JIBIR ◽  
Salamatu Idris ISAH ◽  
Bello A. IBRAHIM
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Basic Education ◽  
Health Care Facilities ◽  
Social Program ◽  
Economic Management ◽  
Poor Countries ◽  
Private And Public ◽  
Rich Countries ◽  
The Impact

<p>Development Assistance is based on the idea that Rich Countries can and should help Poor countries to find the path to sustainable economic growth and poverty reduction—especially those that lack sources of capital. The paper began by reviewing the various sources and composition of net capital flows to developing countries and examined the respective roles of private and public flows in social program it further discussed the arguments and evidence on both sides of the question of whether aid is effective in promoting economic growth. The evidence of a direct effect on growth is inconclusive. Does this mean that aid should be cut back? Not necessarily. The impact of Aid should be evaluated not only in relation to its direct effects, but also in terms of its role in improving governance and economic management, and its contribution to social amenities such as basic education, health care facilities and access, water and infant mortality.</p>

Infrastructure and Economic Transformation in Ethiopia

2019 ◽  
pp. 190-212
Author(s):  
Seid Nuru
Keyword(s):  
Economic Growth ◽  
Capital Accumulation ◽  
Poverty Reduction ◽  
Physical Capital ◽  
Well Being ◽  
Economic Transformation ◽  
Infrastructure Development ◽  
Rail Network ◽  
Development Agenda ◽  
The Cost

Investment in infrastructure has a central role in the development agenda and is critical for supporting economic growth and poverty reduction. Infrastructure affects growth through two channels: directly through physical capital accumulation and indirectly through improvement in productivity. Investment in infrastructure enhances private sector activities by lowering the cost of production and opening new markets. Infrastructure investment in power generation, water, sanitation, and housing improves the social well-being of citizens. This chapter examines the pace and scale of infrastructure development in Ethiopia in the post-1991 period. The unparalleled expansion of infrastructure since the EPRDF came to power in 1991 has had a significant influence on the trajectory of Ethiopia’s economic growth. Investment in infrastructure now accounts for more than 15 per cent of GDP annually. Heavy investments in power, roads, rail network, irrigation, aviation, and logistics have helped to unleash the country’s potential both economically and as a major manufacturing hub in Africa.

scholarly journals Population and Economic Growth Under Different Growth Engines

2017 ◽  
Vol 18 (2) ◽  
pp. 182-211 ◽  
Author(s):  
Alberto Bucci ◽  
Xavier Raurich
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Human Capital ◽  
Population Growth ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Physical Capital ◽  
Long Run

Abstract Using a growth model with physical capital accumulation, human capital investment and horizontal R&D activity, this paper proposes an alternative channel through which an increase in the population growth rate may yield a non-uniform (i.e., a positive, negative, or neutral) impact on the long-run growth rate of per-capita GDP, as available empirical evidence seems mostly to suggest. The proposed mechanism relies on the nature of the process of economic growth (whether it is fully or semi-endogenous), and the peculiar engine(s) driving economic growth (human capital investment, R&D activity, or both). The model also explains why in the long term the association between population growth and productivity growth may ultimately be negative when R&D is an engine of economic growth.

Sign in / Sign up

Export Citation Format

Share Document