The role of technical progress in promoting economic growth in the MENA region

Abstract EN

This study aims at the determination of the main sources of economic growth, while focusing on the role of technical progress in promoting sustainable economic growth in the MENA region during the period 1991-2014.

In order to achieve its goal, this study has been divided into two stages.

In the first stage, the determination of the main sources of economic growth is carried out through the estimation of the contribution of the various production factors by using the Cobb-Douglas production function and the fixed effects model and relying on Hausman test.

The first stage revealed that capital contributes a ratio of about 35.88% of economic growth, while the remaining ratio or 64.12% represents the contribution of the labor factor.

The contribution of the total factor productivity (TFP) was also estimated and amounted to approximately 100% or more in some of the MENA region countries such as Iran.

In this study, total factor productivity (TFP) was chosen to reflect technical progress.