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Diversification, Governance, and Macroeconomic Volatility in MENA Economies

Author

Listed:
  • Abdella Eldarassi
  • Kevin Sylwester

    (School of Analytics, Finance, and Economics, Southern Illinois University - Carbondale, USA)

Abstract

This study examines the extent to which higher quality governing institutions substitute for or complement economic diversification to promote macroeconomic stability in Middle Eastern and North African (MENA) countries. In contrast to previous findings, we found that economic concentration reduces volatility. Moreover, stronger effects emerge for countries with good governance. Economic concentration lowers macroeconomic volatility, especially in countries with good governance.

Suggested Citation

  • Abdella Eldarassi & Kevin Sylwester, 2024. "Diversification, Governance, and Macroeconomic Volatility in MENA Economies," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 5(1), pages 1-4.
    • Handle: RePEc:ayb:jrnael:101
    DOI: 2024/06/29
    as

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    References listed on IDEAS

    as
    1. Miklós Koren & Silvana Tenreyro, 2007. "Volatility and Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(1), pages 243-287.
    2. Balavac, Merima & Pugh, Geoff, 2016. "The link between trade openness, export diversification, institutions and output volatility in transition countries," Economic Systems, Elsevier, vol. 40(2), pages 273-287.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Volatility; Diversification; Governance;
    All these keywords.

    JEL classification:

    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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