The Nexus Relationship between Exports and Government size Dynamic Panel Evidence from the MENA Region

2021 ◽  
Vol 6 (2) ◽  
pp. 160-170
Author(s):  
Mahmoud M. Sabra
Keyword(s):  
System Analysis ◽  
Jel Classification ◽  
Dynamic Panel Data ◽  
Government Policies ◽  
Government Size ◽  
Mena Region ◽  
Dynamic Panel ◽  
Middle Income ◽  
Mena Countries ◽  
Promotion Strategies

Objective - This article aims to detect empirically, the nexus relationship between exports and government size in seven middle-income MENA countries, namely, Algeria, Egypt, Jordan, Lebanon, Morocco, Palestine, and Tunisia, from 2000 to 2019. Methodology/Technique - This article employs two econometric techniques, simultaneous equations using OLS, and recent Dynamic Panel Data system analysis. Findings - Article results show a significant and robust negative association between exports and government size that indicates the need for government adoption of a series of policies for exports promotion strategies and likewise, openness can increase both variables. Growth and FDI increase exports and decrease government size, while ODA decreases exports and increases government size with Inflation-decreasing exports. Novelty - This article shines a light on the expanded government size capable of hindering growth and exports through the adoption of unfavourable policies to support the private sector, growth, and exports. Ultimately, this determines whether government policies are favourable or not. Type of Paper - Empirical Keywords: Exports, Government size, MENA, GMM DPD system. JEL Classification: F14, H11, C33

scholarly journals An econometric study of the role of the political stability on the relationship between democracy and economic growth

2020 ◽  
Vol 67 (2) ◽  
pp. 187-206
Author(s):  
Nedra Baklouti ◽  
Younes Boujelbene
Keyword(s):  
Economic Growth ◽  
Data Model ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Dynamic Panel Data ◽  
The Political ◽  
Dynamic Panel ◽  
Mena Countries ◽  
The Relationship

This article examines the nexus between democracy and economic growth while taking into account the role of political stability, using dynamic panel data model estimated by means of the Generalized Method of Moments (GMM) over the period 1998 to 2011 for 17 Middle East and North Africa (MENA) countries. Our empirical results showed that there is a bidirectional causal relationship between democracy and economic growth. Moreover, it was found that the effect of democracy on economic growth depends on the political stability. The results also indicated that there is important complementarity between political stability and democracy. In fact, political stability is a key determinant variable of economic growth. Eventually, democracy and political stability, taken together, have a positive and statistically significant effect on economic growth. This finding suggests that, if accompanied by a stable political system, democracy can contribute to the economic growth of countries. Thus, the MENA governments should use policies to promote political stability in the region.

scholarly journals Foreign Aid, Domestic Savings and Economic Growth in Selected MENA Countries

2016 ◽  
Vol 6 (1) ◽  
pp. 352 ◽  
Author(s):  
Mahmoud Mohammed Sabra ◽  
AbdelHakeem Eltalla
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
System Analysis ◽  
Negative Impact ◽  
Trade Openness ◽  
Negative Relationship ◽  
Dynamic Panel Data ◽  
Mena Countries ◽  
Domestic Savings

<p class="ber"><span lang="EN-GB">Foreign aid can have either a positive or a negative impact on economic growth. The role of foreign aid in supporting growth by completing domestic savings has been a subject of substantial argument. In this study, we explore the role of foreign aid, trade openness, investment, domestic savings and economic growth in eight MENA countries (Morocco, Algeria, Egypt, Palestine, Syria, Jordan, Lebanon and Tunisia) for the period from 1977 to 2013. The estimation has been done using simultaneous equation model and dynamic panel data system analysis. A negative relationship is found between economic growth and foreign aid. The negative impact of foreign aid on economic growth could be due to presence of Dutch disease and bad policy environment. In addition, foreign aid seems to crowd out domestic savings rather than complementing it. The effects of trade openness and domestic investment on economic growth are significantly positive.</span></p>

Impact of Islamic banking share on financial inclusion: evidence from MENA

2020 ◽  
Vol 13 (4) ◽  
pp. 655-673
Author(s):  
Duha Farouq Khmous ◽  
Mustafa Besim
Keyword(s):  
Banking Sector ◽  
Estimation Method ◽  
Individual Characteristics ◽  
Financial Inclusion ◽  
Islamic Banking ◽  
Mena Region ◽  
Middle Income ◽  
Content Type ◽  
Mena Countries ◽  
The Impact

Purpose This study aims to investigate how the Islamic banking share (percentage of total Islamic banking assets relative to total banking sector assets) and individual characteristics (gender, age, income and education) affect financial inclusion in 14 Middle Eastern and North African (MENA) countries with different income levels. Design/methodology/approach This study uses data from the 2014 World Bank Global Findex database to analyze the impact of individual characteristics, Islamic banking share and countries’ developmental levels on financial inclusion and its barriers in MENA countries. The probit estimation method is used for estimations. Findings The findings indicate that financial inclusion, particularly in middle-income MENA countries, is lower than the global average. While being male, rich and older positively affects financial inclusion in these countries, education does not. Islamic banking practises also contribute to financial inclusion, especially for individuals with strong religious affiliations. The effect of Islamic banking on financial inclusion is found to be greater in middle-income MENA countries. Practical implications Islamic banking institutions could play a greater role in promoting financial inclusion in the MENA region by offering Sharia-compliant products that meet individuals’ needs, matching the specific requirements and status of each country with affordable costs and offering adequate information to customers. Governments should promote more Islamic banking and incentivise investments in technology, which helps expand financial inclusion. Originality/value This is the first study to examine the influence of Islamic banking share and countries’ levels of development on financial inclusion in the MENA region.

scholarly journals The Effect of Trade Liberalization On Economic Growth: Selected MENA Countries

2016 ◽  
Vol 9 (1) ◽  
pp. 88 ◽  
Author(s):  
Naeimeh Hozouri
Keyword(s):  
Economic Growth ◽  
Trade Liberalization ◽  
Data Model ◽  
Inverse Relationship ◽  
Dynamic Panel Data ◽  
Trade Volume ◽  
Dynamic Panel ◽  
Mena Countries ◽  
Dynamic Panel Data Model ◽  
Tariff Rates

This paper investigates the combined effects of international trade on economic development deals and tariff rates. A<strong> </strong>sample of 12 countries (selected countries MENA) during the period of 2000-2013, and the dynamic panel data model have been used for this purpose. Our results show that the sensitivity of economic growth have significant and inverse relationship with tariff changes, though its relationship with trade volume is positive.

Fixed-Mobile Substitution in MENA Countries: The Future of Fixed-Line Markets

2017 ◽  
Vol 16 (4) ◽  
pp. 387-417
Author(s):  
Riham Ahmed Ezzat
Keyword(s):  
Empirical Evidence ◽  
Developed Countries ◽  
Dynamic Panel Data ◽  
Mobile Telephone ◽  
Policy Implications ◽  
Mena Region ◽  
Mena Countries ◽  
Mobile Cellular ◽  
Fixed Line ◽  
Growing Region

Abstract The aim of this paper is to study the occurrence of Fixed-Mobile Substitution (FMS) in the Middle East North African (MENA) region. While there have been many studies on developed countries, empirical evidence for developing countries is somehow limited. In the last few years, mobile cellular subscriptions achieved a tremendous growth across the MENA region making it the second fastest growing region in the world in terms of mobile subscriptions in 2012, and the fastest growing region in terms of mobile traffic in 2014. Fixed subscriptions have also grown but at a slower rate than mobile subscriptions. Using unbalanced data on 17 MENA countries over the period 1990–2009, we explore the relationship between fixed and mobile telephone services by using dynamic panel data models. We find empirical evidence for asymmetric one-way substitution between fixed-lines and mobile phones and we estimate own- and cross-price elasticities for fixed and mobile telephone services in MENA region. The results are then used to derive policy implications in terms of market redefinition, taxation policies, extension of universal services and broadband markets.

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