The determinants of economic growth in selected Arab countries over the period 1998-2017

الملخص EN

This paper aims at exploring the main effective determinants of economic growth in Arab countries (ac).

the study uses panel data for twelve Arab countries over the period from 1998 to 2017.

the stationary tests used show that some variables are stationary at level and the others are not.

kao and pedroni panel cointegration tests showed that the models were cointegrated, suggesting the use of the fully modified ols (fmols) in estimating the statistical models.

the empirical results revealed that the labor force growth rate, gross fixed capital formation, trade openness, economic freedom and most governance indicators were significantly and positively related to economic growth of ac.

to boost sustainable economic growth, Arab countries are strongly recommended to promote and increase investments in human capital, focus on manufacturing and exporting goods where comparative advantage is existed, diversify their production, enhance the rule of law, and encourage the national cohesiveness and peaceful coexistence that ensure political and social stability.