Volume 9, Issue 4, August 2020, Page: 183-191
Public Governance and Economic Growth of Non-Oil-Exporting Arab Countries
Elham Mohammad Alhaj Yousef, Business Economics Department, Faculty of Business, University of Jordan, Amman, Jordan
Received: Apr. 26, 2020;       Accepted: Jun. 1, 2020;       Published: Jun. 17, 2020
DOI: 10.11648/j.ijber.20200904.14      View  299      Downloads  74
Abstract
This paper aims at investigating the impact of public governance on the economic growth in Non-Oil-Exporting Arab countries (NOEAC). The study used panel data for six NOEAC over the period from 1998 to 2017. Some study variables were not stationary at level but they became stationary after taking the first difference for them. The result of applying Kao panel cointegration test revealed that the study model was cointegrated. Therefore, Fully Modified Ordinary Least Squares (FMOLS) model was applied for estimation showing that governance factors have the greatest significant positive effects on the economic growth in such countries. Gross fixed capital formation, labor force growth rate, trade openness, economic freedom, rule of law, regulatory quality, control of corruption, and voice and accountability have statistically significant positive impact on their economic growth during the study period, while the Global Financial Crisis of 2008 (GFC) with its slow recovery has a significant negative impact on their economic growth. Political stability and government effectiveness have insignificant effects. The main conclusion derived from this paper is that political and institutional aspects can play an important role in the economic progress, and they are responsible for major contribution to economic growth and development. Therefore, attracting domestic and foreign direct investments, increasing labor and capital productivities, strengthening governance, improving public administration and eradication of corruption have the first priorities in NOEAC.
Keywords
Governance, Economic Growth, Economic Freedom, Trade Openness
To cite this article
Elham Mohammad Alhaj Yousef, Public Governance and Economic Growth of Non-Oil-Exporting Arab Countries, International Journal of Business and Economics Research. Vol. 9, No. 4, 2020, pp. 183-191. doi: 10.11648/j.ijber.20200904.14
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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