The impact of globalization on economic conditions: empirical evidence from the Mena region

• Main Author: Marwa A. Elsherif
• Format: Article
• Language: English
• Published: Academy of Business & Retail Management 2016-03-01
• Series: International Journal of Business & Economic Development
• Subjects: Globalization; MENA; Economic Performance
• Online Access: http://ijbed.org/admin/content/pdf/i-10_c-100.pdf

The Middle East and North Africa (MENA) is an economically diverse region that includes countries with a common heritage, at various stages of economic development, with vastly different endowment of natural resources and accounts for 6% of the world total population. Despite undertaking economic reforms in many countries, and having considerable success in achieving macroeconomic stability, the region's economic performance in the past 30 years has been below its potential. Some countries that pursued reforms, such as Egypt, Jordan, Morocco, and Tunisia, enjoyed the region's most rapid growth rates, but due to the political instability and turbulences they are still lagged behind. The purpose of this study is to empirically investigate the impact of globalization in MENA region on the economic performances. This study uses a panel data covers the period 2001–2014 for Gulf Cooperation Council (GCC) and non- Gulf Cooperation Council (non-GCC) MENA countries and employs Generalized Method of Moments (GMM) approach. Results indicate that Globalization is negatively affecting economic conditions in non-GCC and it has no significant effect on non-GCC. This study suggests better policy coordination at all level of government to integrate social, economic and political policies as well all to improve transparency and democratic participation. The paper is outlined as follows- following the introduction, section two reviews the current economic conditions in MENA countries, section three discusses data and methodology, section four presents’ results and interpretation of findings, section five provides conclusions and recommendations.