International Journal of Econometrics and Financial Management
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International Journal of Econometrics and Financial Management. 2018, 6(2), 36-44
DOI: 10.12691/ijefm-6-2-2
Open AccessArticle

Trade Openness and Economic Growth: A Vision Based on Export Growth for MENA Countries

Naoufel Mahfoudh1, , Fatima Alhamshary1 and Bashair Al Eisa1

1Administrative and Financial Sciences Department, Community College, Imam Abdulrahman Bin Faisal University, Saudi Arabia

Pub. Date: September 28, 2018

Cite this paper:
Naoufel Mahfoudh, Fatima Alhamshary and Bashair Al Eisa. Trade Openness and Economic Growth: A Vision Based on Export Growth for MENA Countries. International Journal of Econometrics and Financial Management. 2018; 6(2):36-44. doi: 10.12691/ijefm-6-2-2

Abstract

This paper examines the effect of trade openness on economic growth based on export growth as a key variable for the MENA region. We use different methods of estimating the coefficients relative to each variable on a panel of MENA countries over the period 1990-2014. The conclusion is that openness to international trade is generally beneficial for the countries of the MENA region. The effect of openness is also important and that is going through the growth of exports. According to the results, for these countries the diversification of exports is very important insofar as, in addition to its significant effect on economic growth, it is a major asset in supporting exports. Non-oil-exporting MENA countries are called upon to rely more on diversification to support and strengthen the pace of exports, which is a very important factor in taking advantage of the opening of trade. Strengthen the role of institutions and improve the attractiveness of high-tech foreign direct investments. Oil-exporting countries are also called upon to diversify their economies and boost the internal drivers of economic growth.

Keywords:
trade openness economic growth export growth Middle East and North Africa Countries

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