The Export-Led Growth Hypothesis: A Panel Cointegration Approach in the Middle East and North Africa Countries (1980-2017)

This study examines the hypothesis of the Export-Led Growth in the seven selected Middle East and North Africa countries, the hypothesis state that export growth driven by export promotion policies enhances overall economic growth. Empirical investigations have tended to focus attention on the direction of causality between exports and economic growth using Granger causality tests. However, the empirical results based on these tests are, at best, mixed and often contradictory. The paper employs panel data analysis by utilizing the Pedroni panel cointegration, Pedroni Dynamic Ordinary Least Squares and Fully Modify Ordinary Least Squares, and Canning-Pedroni causality methods, a recent development in panel data econometrics, properties of integration and cointegration and consistency of parameters. The study considers the following three variables; Real Gross Domestic Product (GDP), Real exports (EXP) and Real import (IMP). Annual secondary data are obtained from the World Bank Development Indicator for seven MENA countries, Namely, Algeria, Egypt, Sudan, Jordan, Saudi Arabia, UAE, and Qatar. The empirical results emphasize the existence of a positive relationship between Export and GDP. Results of waled and Z-bar Group statistics indicate the long-run unidirectional causality between Export and GDP, operates from Export to the GDP. It confirms the validity of Export-led growth hypothesis of the seven selected MENA countries. Empirical evidence suggests significant policy prescriptions; these countries should focus more on supporting export orientated industries through aid-for-trade, trade-capacity building schemes and other types of policies in order to promote economic growth.

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

Journal of Health and Pollution ◽

10.5696/2156-9614-9.24.191208 ◽

2019 ◽

Vol 9 (24) ◽

Cited By ~ 1

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.

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The Nexus between Financial Development and Economic Growth: Panel Data Evidence from Developing Countries

Journal of Risk and Financial Management ◽

10.3390/jrfm14100489 ◽

2021 ◽

Vol 14 (10) ◽

pp. 489

Author(s):

E. M. Ekanayake ◽

Ranjini Thaver

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Panel Data ◽

Least Squares ◽

Financial Development ◽

Panel Cointegration ◽

Sub Saharan Africa ◽

Explanatory Variables ◽

Cointegration Tests ◽

Sub Saharan

The objective of this study is to investigate the nexus between financial development (FD) in economic growth (GROWTH) in developing countries. The study uses panel data from 138 developing countries during the period 1980–2018. The relationship between financial development and economic growth is investigated using four explanatory variables that are commonly used to measure the level of financial development and several other control variables, including a dummy variable representing the financial and banking crises. The sample of 138 developing countries is also classified into six geographic regions. We have carried out panel unit-root tests and panel cointegration tests before estimating the specified models using both Panel Least Squares (Panel LS) and Panel Fully Modified Least Squares (FMOLS) methods. In addition, panel Granger causality tests have been conducted to identify the direction of causality between FD and GROWTH for each of the regions. The results of the study provide evidence of a direct relationship between FD and GROWTH in developing countries. Furthermore, there is evidence of bi-directional causality running from FD to GROWTH and from GROWTH to FD in samples of Europe and Central Asia, South Asia, and all countries, but not in East Asia and Pacific, Latin America and the Caribbean, Middle East and North Africa, and Sub-Saharan Africa.

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The Impact of Population Aging on Economic Growth: Panel Data Evidence from Middle East Countries

Advances in Human Services and Public Health - Handbook of Research on Economic and Social Impacts of Population Aging ◽

10.4018/978-1-7998-7327-3.ch005 ◽

2021 ◽

pp. 67-86

Author(s):

Abdullah Abdulaziz Bawazir ◽

Mohamed Aslam ◽

Ahmad Farid Osman

Keyword(s):

Economic Growth ◽

Panel Data ◽

Middle East ◽

Fixed Effects ◽

Population Aging ◽

Developed Countries ◽

Ordinary Least Squares ◽

Dependency Ratio ◽

Middle East Countries ◽

The Developed Countries

This study examines the relationship between population aging and economic growth in a panel of 10 selected Middle East countries for the period of 1996–2016. For this purpose, this study uses two different measures of population aging, namely population aged 65 and over and old dependency ratio, to investigate their impacts on economic growth. The study utilizes the three alternative models of static panel data comprised of the pooled ordinary least squares, random effects, and fixed effects. The results of the robust fixed effects model indicate that the population aged 65 and over and the old dependency ratio have a positive effect on economic growth. The finding supports the argument indicating that an aging population does not necessarily adversely affect economic growth in the developing countries as it does in the developed countries. Therefore, the elderly population is not a matter of concern for the Middle East and the mechanisms through which the effect can take place are savings behavior and human capital accumulation of the individuals.

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Cointegration between Economic, Ecological and Tourism Development

Journal of Tourism and Services ◽

10.29036/jots.v12i23.293 ◽

2021 ◽

Vol 12 (23) ◽

pp. 169-180

Author(s):

Tetyana Pimonenko ◽

Oleksii Lyulyov ◽

Yana Us

Keyword(s):

Economic Growth ◽

Least Squares ◽

Greenhouse Gas Emissions ◽

Greenhouse Gas ◽

Tourism Development ◽

Panel Cointegration ◽

Ecological Indicators ◽

Ordinary Least Squares ◽

Gas Emissions ◽

The Eu

The well-developed countries have more options to attract tourists and generate profit from the tourism development. At the same time, the high volume of CO2 emissions, ecological risks, polluted nature restrict the tourism development in the country. The reorientation of global development to green growth provokes transformations in all policies of the country’s development. It allows green countries to attract more tourists. In this case, the paper aims to analyze the relationships between economic growth, ecological indicators, and tourism development. Ukraine has chosen the EU vector of development. In this case, it is necessary to identify the targets for synchronizing the Ukrainian policies (economic, ecological, social, tourism, etc.) with the EU. The objects of the investigation were Ukraine and Visegrad countries for 2000-2020 years. The panel data was generated from World Data Bank, Eurostat, European Environmental Agency, and Ukrstat. The dependent variable – GDP (as an indicator of economic growth), independent – greenhouse gas emissions and share of renewable energy in the total energy consumption (ecological indicators), the volume of tourists (indicators of tourism development). At the first stage, the study used bibliometric analysis to identify publication activities’ general tendency on the analyzed issues. The following methods were applied to check the hypothesis on cointegration between variables: panel unit root test, Pedroni panel cointegration tests, and the fully modified ordinary least squares and dynamic ordinary least squares panel cointegration techniques. The findings confirmed the relationships between economic, ecological, and tourism development. Thus, the decline of greenhouse gas emissions leads to increasing tourists, and as a consequence, it provokes GDP growth.

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Determinants of Financial Moroccan Banks Performance: Approach by the Cointegration Method

Mediterranean Journal of Social Sciences ◽

10.2478/mjss-2018-0123 ◽

2018 ◽

Vol 9 (4) ◽

pp. 141-148 ◽

Cited By ~ 1

Author(s):

Sara Bayoud ◽

Nabil Sifouh ◽

Mohamed Chemlal

Keyword(s):

Economic Growth ◽

Panel Data ◽

Financial Performance ◽

Least Squares ◽

Predictive Power ◽

Ordinary Least Squares ◽

External Factors ◽

Internal Variables ◽

Macroeconomic Variables

Abstract The purpose of this paper is to test the long-term relationship between banks financial performance and two groups of variables, internal variables specific to the bank, and exogenous macroeconomic variables. To appreciate this long-term relationship, we applied the Fully Modified Ordinary Least Squares FMOLS method as a technique for estimation cointegrated panel data. Over a period of 26 semesters (2004 to 2016), our results show that a set of internal variables explains the financial performance of banks. As for external factors, economic growth explains this performance, while inflation has no predictive power of performance at least for our sample of the main Moroccan listed banks.

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INFRASTRUCTURES’ EFFECT ON ECONOMIC GROWTH IN SOUTHEAST SULAWESI

TRIKONOMIKA ◽

10.23969/trikonomika.v18i1.1134 ◽

2019 ◽

Vol 18 (1) ◽

pp. 8

Author(s):

Manat Rahim ◽

Armin Armin ◽

La Ode Suriadi ◽

Muh Armawaddin

Keyword(s):

Economic Growth ◽

Time Series ◽

Data Analysis ◽

Panel Data ◽

Least Squares ◽

Random Effect ◽

Ordinary Least Squares ◽

Legal Documents ◽

Common Effect ◽

Effect Method

The aim of the research is to analyze the effect of infrastructures on economic growth in Southeast Sulawesi. The data used the secunder data which formed time series-based. The data was obtained by publication and legal documents of Statistic Center Unit and relevant institution. The method of analysis used ordinary least squares with panel data. Thus, the data analysis of this research was regretion model with panel data. To estimate regretion of panel data, the researcher used common effect,fixed effect and random effect method. The findings of this research showed that insfrastructures comprised road, harbor, water and electicity simultaniously and significantly influenced the economic growth in Southeast Sulawesi. Partially, only harbor and electricity significantly affected on the economic growth Southeast Sulawesi.

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The Environmental Effects of FDI Evidence from Middle East and North Africa Countries

Journal of Global Information Management ◽

10.4018/jgim.291512 ◽

2021 ◽

Vol 29 (6) ◽

pp. 0-0

Keyword(s):

Theoretical Model ◽

Middle East ◽

North Africa ◽

Environmental Effects ◽

Environmental Kuznets Curve ◽

Empirical Work ◽

Kuznets Curve ◽

Mena Countries ◽

Empirical Results ◽

Negative Effect

Empirical work on the environmental effects of FDI has produced a mixed bag of results, with hardly any evidence for Middle East and North Africa (MENA) countries. A theoretical model is presented, postulating that whether FDI has a positive or negative effect on the environment depends on the position of the underlying country or region on the environmental Kuznets curve (EKC). The empirical results indicate that FDI leads to environmental degradation in MENA countries and that they fall on the rising sector of the EKC. The theoretical model is supported by the empirical results.

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The Role of Energy Consumption, Economic Growth and Globalization in Environmental Degradation: Empirical Evidence from the BRICS Region

Sustainability ◽

10.3390/su13041924 ◽

2021 ◽

Vol 13 (4) ◽

pp. 1924

Author(s):

Habib Ur Rahman ◽

Umer Zaman ◽

Jarosław Górecki

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Least Squares ◽

Environmental Degradation ◽

Carbon Emission ◽

Panel Cointegration ◽

Ordinary Least Squares ◽

Kuznets Curve ◽

Annual Data ◽

Long Run

This paper examines the effect of energy consumption, globalization, and economic growth on the CO2 emission of the BRICS (Brazil, Russian Federation, India, China and South Africa) region. Using annual data from 1989 to 2019, this research applies a panel cointegration approach. In this framework, we use Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) methods to examine the long-run relationship between the selected variables. This empirical investigation reveals that there is a long-run association between these variables, and energy consumption positively and significantly affects the carbon emission in these countries. These results indicate that energy consumption is the primary source of environmental degradation in the region. In contrast, the globalization (KOF Index of Globalization) negatively and significantly affects the carbon emission, implying the improvement of environmental quality. Further, this research could not find the presence of environmental Kuznets curve in the region. Policy guidelines are suggested in the line of findings.

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Natural Resource Abundance, Renewable Energy, and Ecological Footprint Linkage in MENA Countries

Studies of Applied Economics ◽

10.25115/eea.v39i2.3927 ◽

2020 ◽

Vol 39 (2) ◽

Author(s):

Solomon Prince Nathaniel ◽

Ngozi ADELEYE ◽

Festus Fatai ADEDOYIN

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Least Squares ◽

Natural Resource ◽

Ecological Footprint ◽

Negative Impact ◽

Ordinary Least Squares ◽

Kuznets Curve ◽

Mena Countries ◽

Resource Exploration

Apart from being vulnerable to the menace created by climate change, the MENA countries consume more of non-renewable energy despite their resource endowments and great renewable energy potentials. Energy consumption, natural resource exploration and urbanization may add to environmental degradation since ecological distortions emanate from human activities. This study investigates the effects of the aforementioned variables on the ecological footprint in MENA countries. The findings confirm the Environmental Kuznets Curve (EKC) hypothesis and further reveal the negative impact of natural resource and economic growth on the environment. Renewable energy and urbanization reduce ecological footprint. The Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) were applied to obtain the country-specific results. Further findings suggest a feedback causality between urbanization, economic growth and ecological footprint. Policy directions based on the findings are extensively discussed.

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Export and Economic Growth Nexus in the GCC Countries: A panel Data Approach

International Journal of Business and Social Research ◽

10.18533/ijbsr.v7i12.1084 ◽

2017 ◽

Vol 7 (12) ◽

pp. 01

Author(s):

Hatem Hatef Abdulkadhim ◽

Sazan Taher Saeed

Keyword(s):

Economic Growth ◽

Panel Data ◽

Fixed Effects ◽

Panel Data Analysis ◽

Strong Support ◽

Ordinary Least Squares ◽

Empirical Literature ◽

Fixed Effects Model ◽

Font Size ◽

Growth Hypothesis

The export and economic growth nexus, which is called Balassa’s Export-Led Growth Hypothesis (ELGH) in the literature, is still an unstill issue in both the theoretical and empirical literature. In the present study, the effect of export on economic growth in oil exporting developing countries, namely, Bahrain, Saudi Arabia, Qatar, Kuwait, UAE, and Oman in the 1990–2014 period was tested based on three models, pooled ordinary least squares (POLS), fixed effects model (FEM), and random effects model (REM) via panel data analysis . The findings revealed strong support for the “export-led growth” hypothesis. In addition, our results show that apart from growth in the labor force, investments in capital formation are necessary for economic growth. According to the obtained results, the ability to adopt technological changes in order to increase efficiency, and sustain economic development is also important.

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