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Growth in the Middle East and North Africa

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  • Ms. Dalia S Hakura

Abstract

This paper analyzes the weak growth performance in the Middle East and North Africa (MENA) region during 1980-2000 using an empirical model of long-run growth. The relative importance of the factors affecting growth is shown to vary across 16 MENA countries. In GCC countries, where oil revenues are significant, large governments appear to have been a key factor stifling private-sector growth and impeding diversification. In other MENA countries poor institutional quality has held back growth. Political instability is also shown to have played a role. While the MENA region's growth differential with east Asia is explained well in the 1980s, this is less so in the 1990s.

Suggested Citation

  • Ms. Dalia S Hakura, 2004. "Growth in the Middle East and North Africa," IMF Working Papers 2004/056, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2004/056
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    Cited by:

    1. Agenor, Pierre-Richard & Nabli, Mustapha K. & Yousef, Tarik M., 2005. "Public infrastructure and private investment in the Middle East and North Africa," Policy Research Working Paper Series 3661, The World Bank.
    2. Bougharriou, Nouha & Benayed, Walid & Gabsi, Foued Badr, 2019. "The democracy and economic growth nexus: Do FDI and government spending matter? Evidence from the Arab world," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-29.
    3. Hideaki Hirata & Sunghyun Henry Kim & M. Ayhan Kose, 2007. "Sources of Fluctuations: The Case of MENA," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 43(1), pages 5-34, February.
    4. Adolfo Barajas & Ralph Chami & Seyed Reza Yousefi, 2016. "The Finance and Growth Nexus Re-Examined: Do All Countries Benefit Equally?," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 1(5), pages 5-38, June.
    5. Mushtaq Ahmad Malik & Tariq Masood, 2020. "Analysis of Growth Accounting and Convergence in MENA Countries: Panel Cointegration Approach," South Asian Journal of Macroeconomics and Public Finance, , vol. 9(2), pages 237-262, December.
    6. Rabia Aslam, 2007. "Measuring The Peace Dividend: Evidence From Developing Economies," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(1), pages 39-52.
    7. Mr. Ludvig Söderling & Mrs. Hanan Morsy & Mr. Martin Petri & Mr. Martin Hommes & Ms. Manal Fouad & Wojciech Maliszewski, 2007. "Public Debt and Fiscal Vulnerability in the Middle East," IMF Working Papers 2007/012, International Monetary Fund.
    8. Amina Lahrèche-Révil & Juliette Milgram, 2006. "Exchange-rate policies and trade in the MENA countries," ThE Papers 06/07, Department of Economic Theory and Economic History of the University of Granada..
    9. Hossein Askari & Roshanak Taghavi, 2006. "Economic failure in the Middle East," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 59(236), pages 81-111.
    10. Raphael Espinoza, 2012. "Efficiency in the GCC," OxCarre Working Papers 095, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    11. Yacine Belarbi & Lylia Sami & Said Souam, 2015. "Effects of Institutions and Natural Resources in a Multiple Growth Regime," Working Papers 905, Economic Research Forum, revised Apr 2015.
    12. Balcilar, Mehmet & Bagzibagli, Kemal, 2010. "Sources of Macroeconomic Fluctuations in MENA Countries," MPRA Paper 44351, University Library of Munich, Germany.
    13. Abdullah Abdulaziz A. Bawazir & Mohamed Aslam & Ahmad Farid Bin Osman, 2020. "Demographic change and economic growth: empirical evidence from the Middle East," Economic Change and Restructuring, Springer, vol. 53(3), pages 429-450, August.
    14. Masoud Nili & Solmaz Moselhi, 2008. "The Role of Government Activities in Explaining the Growth Failure of the Oil Exporting Countries," Working Papers 398, Economic Research Forum, revised 03 Jan 2008.
    15. Raphael Espinoza, 2012. "Factor Accumulation and the Determinants of TFP in the GCC," OxCarre Working Papers 094, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.

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