The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries

Elham Mohammad Alhaj Yousef; Taleb Awad Warrad

doi:doi:10.11648/j.ijber.20190803.18

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The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries

Elham Mohammad Alhaj Yousef, Taleb Awad Warrad

Published in International Journal of Business and Economics Research (Volume 8, Issue 3)

Received: 8 May 2019 Accepted: 10 June 2019 Published: 26 June 2019

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Abstract

This paper aims at exploring the main determinants of economic growth in Oil-Exporting Arab countries (OEAC) by shedding light on the most effective determinants. It is then wished that governments and policy makers would concentrate on and take them into consideration when they are designing and applying their public policies. The study used panel data for six OEAC over the period of 1998-2017. Some study variables were not stationary at level but they became stationary after taking the first difference for them. The result of applying panel Pedroni cointegration test revealed that the model was cointegrated. Therefore, FMOLS model was applied for estimation showing that gross fixed capital formation, labor force growth rate, economic freedom, rule of law, regulatory quality and government effectiveness have statistically significant positive impact on the economic growth of OEAC, while trade openness, control of corruption, political stability and voice and accountability have insignificant effects on their economic growth during the study period. Moreover, the Global Financial Crisis of 2008 with its slow recovery has a significant negative impact on the economic growth of such countries. Therefore, the study recommends OEACs’ governments to make “real” institutional reforms and adopt the appropriate polices that eliminate corruption and rent seeking behaviour and enhance the rule of law. They also need to improve the quality of education and to develop the skills and expertise of their labour force. In addition, they have to establish specialization in the production of goods in which they have comparative advantages and diversify their production and sources of national income, and not to depend only on exporting natural raw materials, which altogether eventually ensure resources are efficiently and effectively utilized in pursuit of their economic growth and social development.

Published in	International Journal of Business and Economics Research (Volume 8, Issue 3)
DOI	10.11648/j.ijber.20190803.18
Page(s)	142-152
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Economic Growth, Arab Countries, Governance, Trade Openness

References

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APA Style

Elham Mohammad Alhaj Yousef, Taleb Awad Warrad. (2019). The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries. International Journal of Business and Economics Research, 8(3), 142-152. https://doi.org/10.11648/j.ijber.20190803.18

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ACS Style

Elham Mohammad Alhaj Yousef; Taleb Awad Warrad. The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries. Int. J. Bus. Econ. Res. 2019, 8(3), 142-152. doi: 10.11648/j.ijber.20190803.18

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AMA Style

Elham Mohammad Alhaj Yousef, Taleb Awad Warrad. The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries. Int J Bus Econ Res. 2019;8(3):142-152. doi: 10.11648/j.ijber.20190803.18

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@article{10.11648/j.ijber.20190803.18,
  author = {Elham Mohammad Alhaj Yousef and Taleb Awad Warrad},
  title = {The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {3},
  pages = {142-152},
  doi = {10.11648/j.ijber.20190803.18},
  url = {https://doi.org/10.11648/j.ijber.20190803.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190803.18},
  abstract = {This paper aims at exploring the main determinants of economic growth in Oil-Exporting Arab countries (OEAC) by shedding light on the most effective determinants. It is then wished that governments and policy makers would concentrate on and take them into consideration when they are designing and applying their public policies. The study used panel data for six OEAC over the period of 1998-2017. Some study variables were not stationary at level but they became stationary after taking the first difference for them. The result of applying panel Pedroni cointegration test revealed that the model was cointegrated. Therefore, FMOLS model was applied for estimation showing that gross fixed capital formation, labor force growth rate, economic freedom, rule of law, regulatory quality and government effectiveness have statistically significant positive impact on the economic growth of OEAC, while trade openness, control of corruption, political stability and voice and accountability have insignificant effects on their economic growth during the study period. Moreover, the Global Financial Crisis of 2008 with its slow recovery has a significant negative impact on the economic growth of such countries. Therefore, the study recommends OEACs’ governments to make “real” institutional reforms and adopt the appropriate polices that eliminate corruption and rent seeking behaviour and enhance the rule of law. They also need to improve the quality of education and to develop the skills and expertise of their labour force. In addition, they have to establish specialization in the production of goods in which they have comparative advantages and diversify their production and sources of national income, and not to depend only on exporting natural raw materials, which altogether eventually ensure resources are efficiently and effectively utilized in pursuit of their economic growth and social development.},
 year = {2019}
}

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TY  - JOUR
T1  - The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries
AU  - Elham Mohammad Alhaj Yousef
AU  - Taleb Awad Warrad
Y1  - 2019/06/26
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DO  - 10.11648/j.ijber.20190803.18
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
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EP  - 152
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190803.18
AB  - This paper aims at exploring the main determinants of economic growth in Oil-Exporting Arab countries (OEAC) by shedding light on the most effective determinants. It is then wished that governments and policy makers would concentrate on and take them into consideration when they are designing and applying their public policies. The study used panel data for six OEAC over the period of 1998-2017. Some study variables were not stationary at level but they became stationary after taking the first difference for them. The result of applying panel Pedroni cointegration test revealed that the model was cointegrated. Therefore, FMOLS model was applied for estimation showing that gross fixed capital formation, labor force growth rate, economic freedom, rule of law, regulatory quality and government effectiveness have statistically significant positive impact on the economic growth of OEAC, while trade openness, control of corruption, political stability and voice and accountability have insignificant effects on their economic growth during the study period. Moreover, the Global Financial Crisis of 2008 with its slow recovery has a significant negative impact on the economic growth of such countries. Therefore, the study recommends OEACs’ governments to make “real” institutional reforms and adopt the appropriate polices that eliminate corruption and rent seeking behaviour and enhance the rule of law. They also need to improve the quality of education and to develop the skills and expertise of their labour force. In addition, they have to establish specialization in the production of goods in which they have comparative advantages and diversify their production and sources of national income, and not to depend only on exporting natural raw materials, which altogether eventually ensure resources are efficiently and effectively utilized in pursuit of their economic growth and social development.
VL  - 8
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Author Information

Elham Mohammad Alhaj Yousef

Business Economics Department, Faculty of Business, University of Jordan, Amman, Jordan
Taleb Awad Warrad

Business Economics Department, Faculty of Business, University of Jordan, Amman, Jordan

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Elham Mohammad Alhaj Yousef, Taleb Awad Warrad. (2019). The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries. International Journal of Business and Economics Research, 8(3), 142-152. https://doi.org/10.11648/j.ijber.20190803.18

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Elham Mohammad Alhaj Yousef; Taleb Awad Warrad. The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries. Int. J. Bus. Econ. Res. 2019, 8(3), 142-152. doi: 10.11648/j.ijber.20190803.18

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AMA Style

Elham Mohammad Alhaj Yousef, Taleb Awad Warrad. The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries. Int J Bus Econ Res. 2019;8(3):142-152. doi: 10.11648/j.ijber.20190803.18

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@article{10.11648/j.ijber.20190803.18,
  author = {Elham Mohammad Alhaj Yousef and Taleb Awad Warrad},
  title = {The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {3},
  pages = {142-152},
  doi = {10.11648/j.ijber.20190803.18},
  url = {https://doi.org/10.11648/j.ijber.20190803.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190803.18},
  abstract = {This paper aims at exploring the main determinants of economic growth in Oil-Exporting Arab countries (OEAC) by shedding light on the most effective determinants. It is then wished that governments and policy makers would concentrate on and take them into consideration when they are designing and applying their public policies. The study used panel data for six OEAC over the period of 1998-2017. Some study variables were not stationary at level but they became stationary after taking the first difference for them. The result of applying panel Pedroni cointegration test revealed that the model was cointegrated. Therefore, FMOLS model was applied for estimation showing that gross fixed capital formation, labor force growth rate, economic freedom, rule of law, regulatory quality and government effectiveness have statistically significant positive impact on the economic growth of OEAC, while trade openness, control of corruption, political stability and voice and accountability have insignificant effects on their economic growth during the study period. Moreover, the Global Financial Crisis of 2008 with its slow recovery has a significant negative impact on the economic growth of such countries. Therefore, the study recommends OEACs’ governments to make “real” institutional reforms and adopt the appropriate polices that eliminate corruption and rent seeking behaviour and enhance the rule of law. They also need to improve the quality of education and to develop the skills and expertise of their labour force. In addition, they have to establish specialization in the production of goods in which they have comparative advantages and diversify their production and sources of national income, and not to depend only on exporting natural raw materials, which altogether eventually ensure resources are efficiently and effectively utilized in pursuit of their economic growth and social development.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - The Economic and Non-Economic Determinants of Economic Growth in Oil-Exporting Arab Countries
AU  - Elham Mohammad Alhaj Yousef
AU  - Taleb Awad Warrad
Y1  - 2019/06/26
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190803.18
DO  - 10.11648/j.ijber.20190803.18
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 142
EP  - 152
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190803.18
AB  - This paper aims at exploring the main determinants of economic growth in Oil-Exporting Arab countries (OEAC) by shedding light on the most effective determinants. It is then wished that governments and policy makers would concentrate on and take them into consideration when they are designing and applying their public policies. The study used panel data for six OEAC over the period of 1998-2017. Some study variables were not stationary at level but they became stationary after taking the first difference for them. The result of applying panel Pedroni cointegration test revealed that the model was cointegrated. Therefore, FMOLS model was applied for estimation showing that gross fixed capital formation, labor force growth rate, economic freedom, rule of law, regulatory quality and government effectiveness have statistically significant positive impact on the economic growth of OEAC, while trade openness, control of corruption, political stability and voice and accountability have insignificant effects on their economic growth during the study period. Moreover, the Global Financial Crisis of 2008 with its slow recovery has a significant negative impact on the economic growth of such countries. Therefore, the study recommends OEACs’ governments to make “real” institutional reforms and adopt the appropriate polices that eliminate corruption and rent seeking behaviour and enhance the rule of law. They also need to improve the quality of education and to develop the skills and expertise of their labour force. In addition, they have to establish specialization in the production of goods in which they have comparative advantages and diversify their production and sources of national income, and not to depend only on exporting natural raw materials, which altogether eventually ensure resources are efficiently and effectively utilized in pursuit of their economic growth and social development.
VL  - 8
IS  - 3
ER  -

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