Source of Economic Growth in MENA Region: An Empirical Study

Abstract

This paper aims to study the sources of growth in the MENA region between 1970-2023. We focus on understanding the factors that determine growth in the region. To this end, we use the growth accounting approach where we construct a series of physical capital stocks using the perpetual inventory method (PIM) and estimate the share of capital, labor, and TFP in GDP. To do this, statistical and empirical analyses are carried out using a set of econometric estimates. The results show the predominance of the contribution of capital accumulation over that of labor and TFP to growth performance over the period 1990-2023. The MENA region as a whole experienced the lowest contribution of TFP to economic growth compared to the rest of the regions.