Re-Evaluation of Non-Economic Hindrances in the Economic Performance of Mena Region

Abstract

This study attempts to relate political and structural performance with the economic growth of MENA region. This region is endowed with one of the most vital natural resources i.e. oil & gas but still it lacks in its economic progress. Recently the wave of Arab Spring also caused to the slower pace of development in this region which ultimately led to retarded economic well-being of people. Factors like the level of Stateness in these nations, market competition, extent of regional cooperation and their structural barriers are used to evaluate the impact of non-economic variables on the economic growth of these nations. Time span of the study is from 2006-2015 and results are estimated using Fully Modified Least Squares (FGLS) Technique. Findings of the Model reports that except structural barriers which are measured by constraints on the management bodies to improve governance structures, all other three variables affecting positively to the economic growth of this region. However impact of Stateness is stronger than the other two factors. On the basis of these findings it can be concluded that these nations should try to reduce their. Moreover more efforts should be made to increase the level of competition in markets and interconnectedness among neighboring nations.