FDI Effects on Economic Growth: The Role of Natural Resource and Environmental Policy

Foreign direct investment (FDI) is a crucial ingredient of the global economy. In the Persian Gulf, FDI is a major source of economic growth, employment, technology, and productivity. Because of these benefits, attracting FDI in the Persian Gulf region has become a key element of strategies promoting economic development. Natural resources and environmental policy in host countries may affect the FDIeconomic growth relationship. There has been much dispute as to whether economies that are open and those with more natural capital and lax environmental policy grow faster. This paper examines whether natural resources and environmental policy in Persian Gulf countries alter the relationship between FDI and Persian Gulf’s economics growth. We estimate a linear dynamic panel-data model using data from Persian Gulf countries over the period 1980–2012.The results show that the impact of arable land, forest area and the interaction between FDI and environmental policy on economic growth is negative, but renewable internal freshwater resources flows, mineral depletion and energy use have a positive effect

Taking into Account Sustainable Development for MENA Countries: The Calculation of a Modified HDI Index

GDP, a measure of economic welfare, may be supplemented with other measures of economic welfare and environmental sustainability. This article discusses alternative measures which have been proposed in the literature concerning pollution, which can be used to augment GDP as a measure of welfare to produce a better index

Sustainable Tourism in Some MENA Countries

According to UNWFTO, 20% of world tourism is concentrated in Mediterranean countries. The wealth in natural resources of the Mediterranean coastline (beautiful landscape, climate favorable for tourism, important biodiversity, etc…) makes it the first world touristic destination. The development of the tourism sector has permitted economics gains, especially for economies on the North side of the Mediterranean Sea. Nevertheless tourism also has harmful effects such as deterioration of the environment. According to the Plan Bleu, in 2000, 40% of the 46 000 Km of the Mediterranean coastline are artificial and urbanized. This situation is not sustainable because the increases in touristic demand apply pressure on natural resources so that there is a risk for economic activities based on tourism. Indeed tourism depends on the environment; degradation of the natural resources has negative effects on touristic arrivals and then in revenues produced by tourism. That’s why Mediterranean economies need a tourism development strategy combining economic development and preservation of the environment. Our article aims at analyzing the different effects of ecotourism in terms of revenues and employment in order to answer the following question: Can the development of ecotourism be a credible and sustainable development strategy for Mediterranean countries

Decoupling Economic Growth and CO2 Emissions in the MENA: Can It Really Happen?

Our aim is to study the interrelationship between CO2 emissions and gross domestic product (GDP) trends in selected MENA countries in order to detect whether environmental pressure has decoupled from economic growth in the region. Several MENA countries have become less carbon intensive along their growth paths due to different reasons. Some have been trying to switch their energy systems away from fossil fuels and some use less energy per unit of economic activity. Services sectors, which are less energy-intensive, are on the rise, whereas industrial sectors are shrinking. This study seeks to answer whether this is a general phenomenon observed in the MENA, and examines the impact of these factors on the possible existence or lack of such decoupling in a panel data setting. In regards to the ways that give rise to possible decoupling, technological changes enable countries to economize on energy use, especially when the prices of energy increase in oil/gas importing economies. The role of the private sector is also crucial to drive decoupling of CO2 emissions and economic growth. This paper intends to propose possible policy options for the region including public policies that encourage renewable energy and discourage subsidizing fossil fuels