Abstract
Background: Exports are the fundamental foundation of economic growth since they enable each nation to obtain foreign reserves, which helps it grow and expand more quickly. The relationship between exports and economic growth has proven to be a crucial topic for analysts to research and debate. Classical and neoclassical economists are associated with the theory that trading affects economic progress. As per the 2012 OPEC statement, 58 % of the globe’s oil resources and 43 % of the globe’s natural gas resources, respectively, were generated in the MENA regions. The region continues to supply 55% of the globe’s oil resources from 2008 to 2018.
Aims: The research article’s main aim is to assess the relationship between export and economic growth in the MENA region by adopting a quantitative methodology.
Method: The data for a total of 15 countries from the MENA region for the period 2000 to 2020 were considered. Furthermore, two econometric analyses were applied to assess the regression models and the relationship between export and economic growth in the MENA region.
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Exports are the fundamental foundation of economic growth since they enable each nation to obtain foreign reserves, which helps it grow and expand more quickly (Bakari & Mabrouki, 2017). A nation with these foreign reserves can purchase the technologies to increase productivity. The welfare levels might also increase due to using foreign products that are either unavailable domestically or costly to create domestically (Sunde, 2017). The relationship between exports and economic growth has proven to be a crucial topic for analysts to research and debate. Classical and neoclassical economists are associated with the theory that trading affects economic progress. Several research studies have examined the impact of trade policies on economic growth.
Furthermore, Canh and Thanh (2022) argue that Gross Domestic Product (GDP) has been identified as among the key factors influencing economic development. According to the theory of “export-led growth,” exports are the main route whereby the economic reform might influence the amount of productivity and, subsequently, the development of economic expansion. Export growth could boost production and provide large-scale efficiencies (Huchet‐Bourdon & Vijil, 2018).
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Abdelsalam, M. A. M. (2020). Oil price fluctuations and economic growth: The case of MENA countries. Review of Economics and Political Science.
Adeleye, J.O., Adeteye, O.S. and Adewuyi, M.O., 2015. Impact of international trade on economic growth in Nigeria (1988-2012). International Journal of Financial Research, 6(3), pp.163-172.
Ahmad, F., Draz, M.U. and Yang, S.C., 2018. Causality nexus of exports, FDI and economic growth of the ASEAN5 economies: evidence from panel data analysis. The Journal of International Trade & Economic Development, 27(6), pp.685-700.
Bakari, S., & Mabrouki, M. (2017). Impact of exports and imports on economic growth: new evidence from Panama. Journal of Smart Economic Growth, 2(1), 67-79.
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