Workers’ Remittances and Growth in MENA Labor Exporting Countries

This paper presents an empirical examination of effects of workers’ remittance on economic growth in a sample of 7 remittance-receiving MENA countries. In order to empirically analyze the impact of remittances we estimate growth equations using a set of 7 MENA labor exporting countries during the period 1975-2006. A standard growth models are estimated using both fixed-effects and random effects models. The empirical results show the support of the fixed –effects method as the random effects model is rejected in statistical tests. The results show the support for the view that remittances have a positive impact on growth both directly and indirectly through their interactions with financial and institutional channels.Remittances, Economic Growth, Panel Data, Fixed effects, MENA Countries

DYNAMICS OF EXPORTS, INFRASTRUCTURE, AND GROWTH IN GCC: VARS AND CAUSALITY TESTING

The paper is concerned with analyzing the dynamic effects of exports and infrastructure on GCC economic growth. Panel cointegration methodology is used to test for the existence of a long relationship between the variable. Two tests, Kao (1999) and Johansen cointegration tests are applied to check for cointegration. The results of the two tests reveal that there exists a long run co-integrating relationship between export and infrastructure proxies and economic growth in GCC countries. Additionally, fully modified least square (FMOLS) and dynamic ordinary least square (DOLS) were used to test the magnitude of the long relationship among variables. The results show that export and infrastructure variables are positive and have significant impact on the long run growth of the GCC economy. Further, fixed –effects method is selected as random effect model is rejected based on Hausman test result. The results of fixed effect show that export and infrastructure variables ate positive and statistically significant. With regard to policy, variable mixed results were obtained. As a policy recommendation the study, suggest that proper absorptive capacity such as deep financial institution, good infrastructure quality and supplementing public expenditures should be met in order to maximize the benefits of exports. JEL: C33; O11; F10; O19; O47 Article visualizations

ANOTHER LOOK AT THE DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN MENA COUNTRIES: AN EMPIRICAL INVESTIGATION

The paper is concerned with the analysis of the main determinants of foreign direct investment in MENA countries. The estimation is run on the determinants of FDI in our sample which consist of 36 countries. 12 of these countries were in MENA countries and another 24 were the major recipients of FDI in their respective regions in developing countries. By employing a panel data methodology the study investigates whether the determinants of FDI are similar to the other FDI receiving developing countries. The study reveals that the key determinants of FDI inflows in MENA countries are the size of the host economy, the government size, natural resources and the institutional variables. The paper concludes that, countries that are receiving fewer foreign investments could make themselves more attractive to potential foreign investors. So, the policy makers in the MENA region should remove all barriers to trade, develop their financial system and build appropriate institutions.Foreign Direct Investment, Panel Data, Fixed Effects, MENA

Unlocking the Synergy: ICT, Global Trade, and Growth in the GCC Region - A Panel-Causality Analysis

This study investigates the intricate relationship between Information and Communication Technology (ICT), global trade, and economic growth in the Gulf Cooperation Council (GCC) region over the period 1990–2022. The study Utilize a panel data framework covering the GCC member states over a significant time span, and employing an advanced econometric technique to assess the causal and cointegrated relationships among these key variables. Three tests, [1], [2], [2] Cointegration tests are applied to check for Cointegration. Additionally, fully modified least square (FMOLS) and dynamic ordinary least square (DOLS) will be used to test the magnitude of the long relationship among variables. The analysis integrates a comprehensive dataset that includes ICT indicators, trade flows, and macroeconomic variables, allowing for a robust examination of the synergy among these critical elements. The results reveal multifaceted relationships within the GCC context. While ICT is found to have a positive and significant impact on global trade and economic growth, the study also identifies bidirectional causality between ICT and global trade, indicating a reinforcing loop. Furthermore, evidence suggests that global trade plays a pivotal role in enhancing ICT diffusion within the region. The findings of this paper have several ramifications.  First, they highlight the necessity for GCC governments to give priority to digitization and ICT infrastructure development activities in order to promote international commerce and economic diversification. Second, Policymakers should also consider crafting trade policies that facilitate the exchange of ICT-related goods and services, further fostering economic growth. &nbsp