Is Middle East and North Africa different? A comparative analysis of growth and structural change in and outside MENA. Issue 2 (2nd July 2016)

• Record Type: Journal Article
• Authors: Dalila, Nicet-Chenaf; Eric, Rougier
• Is Part Of: Middle East development journal. Volume 8:Issue 2(2016)
• Page Start: 177
• Page End: 197
• Publication Date: 2016-07-02
• Subjects: economic growth -- structural change -- institutions -- corruption -- MENA -- middle-income; developing countries -- comparative analysis; Middle East -- Economic conditions -- 1979- -- Periodicals; Economic forecasting -- Middle East -- Periodicals; Africa -- Economic conditions -- 1960- -- Periodicals; Economic forecasting -- Africa -- Periodicals; Economic forecasting; Economic history; Africa; Middle East; Periodicals; 338.95605
• DOI: 10.1080/17938120.2016.1225453
• Languages: English
• ISSNs: 1793-8120

Abstract

Abstract : By using general method of moments-system estimation on a panel of developing countries over the period 1984–2011, we contrast the Middle East and North African (MENA) countries' growth pattern with that of middle-income countries from other regions. Three complementary dimensions of growth driver are assessed: accumulation, structural change and institutions. Our comparative analysis shows that MENA economies sharply contrast with other middle-income emerging economies with respect to two main dimensions: (1) the sectoral structure of production and (2) the institutional environment. We show that, during the last three decades, the MENA region has exhibited a specific pattern of growth featuring a low pace of structural change and high corruption levels, which may have hindered highly productive job creation, and eventually bred massive discontent in the region. The assumption of the complementary effect of the accumulation, institutional and structural growth determinants is also supported by our empirical estimations.