Institutional quality and economic growth: an empirical analysis on mena region

Abstract EN

This research aims to investigate the influence of institutional quality on Economic growth in MENA region.

The sample covers 23 MENA region countries for the period 1996-2018.

Governance indicators are used as a proxy for institutional quality.

Results suggest that the model adopted by Abou-Ali and M.

Abdelfattah (2013), in which they use the Resource Curse Hypothesis model and the Environmental Kuznets Curve model simultaneously while taking into consideration the institutional quality, is best fitted to the data, so the research apply the methods of testing that used panel data approach of causality, and fixed and random effect model.

Furthermore, findings of the research indicated a positive and significant effect of institutional quality on economic growth in high and middle-income countries in MENA region, sopolicymakers In MENA countries should reinforce the quality of their institutions by adopting good practice of governance and regulations.

As the study prove that the proper rule of law enhances the business environment and hence improves foreign direct investment and help in promoting economic growth.