NEIFAR, MALIKA and Smaoui, Fatma (2025): What Can Drive Socioeconomic Development in MENA High Income and Upper-Middle-Income Countries? A Panel Causality Analysis.
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Abstract
This study investigates the short- and long-run causality linkages between the socioeconomic development (SED) measured by the GNI per capita and 4 groups of selected factors including information and communications technology (ICT), political, demographic, and macroeconomic indicators in a panel of 19 countries classified as High Income (HIC) countries or Upper-Middle-Income countries (UMIC) from MENA zone between 2008-2021. For comparison analysis between groups/countries, the research design is based on three Granger non causality tests type. The first is the (Dumitrescu & Hurlin, 2012) panel non-causality test, the second is the panel VAR Block Exogeneity Wald Tests, and the third is the panel ARDL ECM-based Granger non causality tests. The results suggest that each group of the considered factors is a predictor with effects depend on the type of factors or the income level of the country. Based on the descriptive analysis and more sophisticated econometric techniques, the difference is obvious in the short- and long-term. Indeed, in the short-run, besides agriculture indicator, the GNI for each group is affected by at least one of the ICT indicators in addition to tourism for the HIC and demographic and political factors for the UMIC. In the long-run, GNI is caused by demographic factors for HIC (except for Kuwait and Libya) and economic factor (except for Oman), ICT factors for Iran, Kuwait, Oman, and Lebanon and all UMIC except Jordan. In addition, the political (demographic) factors for Lebanon, Saudi Arabia, and Turkey (for all UMIC except Syria), and the economic (political) factors for Jordan, Egypt, and Tunisia (Algeria and Morocco) contribute to the GNI prediction in the long-run. The findings come in help for Governments and policymakers to adjust their policies and to design the most adequate policy according to the causality linkages between GNI and the selected factors.
Item Type: | MPRA Paper |
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Original Title: | What Can Drive Socioeconomic Development in MENA High Income and Upper-Middle-Income Countries? A Panel Causality Analysis |
English Title: | What Can Drive Socioeconomic Development in MENA High Income and Upper-Middle-Income Countries? A Panel Causality Analysis |
Language: | English |
Keywords: | Socioeconomic Development; ICT, political, demographic and economic factors; MENA zone; Panel D-H Granger non causality; PVAR and PARDL-ECM models. |
Subjects: | C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O20 - General |
Item ID: | 123777 |
Depositing User: | Pr Malika NEIFAR |
Date Deposited: | 14 Mar 2025 07:54 |
Last Modified: | 14 Mar 2025 07:54 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/123777 |