Do Globalization and Economic Freedom Trigger Economic Growth in MENA Countries? Empirical Evidence and Policy Implications
Do Globalization and Economic Freedom Trigger Economic Growth in MENA Countries? Empirical Evidence and Policy Implications

Summary/Abstract: The present paper examines the impact of globalization and economic freedom on economic growth in 14 MENA countries over the period 1995-2011, through the use of panel data analysis. According to Hausman test, the fixed effects model is the most appropriate one, and it illustrates that the globalization index displays a positive influence on the MENA region’s economic growth; also economic freedom exhibits a significant positive effect on economic growth in 14 MENA countries. Based on these findings, it could be concluded that there is a great opportunity for MENA countries to achieve high growth rates through implementing sound trade policies, fostering the financial system development and creating more favorable investment climate, it is also recommended to enact suitable macroeconomic policies and pay more attention to the coherent work of the triptych resources, technology and competition. As well as, the MENA region is committed to strengthen the institutional quality that supports the proper functioning of markets and curbs the pervasive corruption.

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