Topics in Middle Eastern and North African Economies
Document Type
Article
Publication Date
5-1-2022
Abstract
This study investigates the relationship between manufacturing share in GDP (MVA) and growth for a balanced panel of 13 Middle East and North Africa (MENA) economies over the 1996-2019 period. We examine whether the impact of MVA on growth may change depending on the structural domestic conditions (SDC) including human capital, governance and financial development. Our panel fixed effects threshold estimation results suggest that SDC provides an endogenously estimated threshold for the sensitivity of growth to MVA. Accordingly, manufacturing is the engine of growth for the episodes of SDC exceeding the data-driven estimated threshold levels. We find that SDC, themselves, encourage growth in economies with better SDC, except human capital. The sensitivity of growth to human capital is much higher in less educated labor economies because the marginal contribution of labor is greater for these economies than the others.
Journal Title
Topics in Middle Eastern and North African Economies
ISSN
2334-282X
Publisher
Middle East Economic Association and Loyola University Chicago
Volume
24
Issue
1
Recommended Citation
Taşdemir, Fatma, "Manufacturing as the Engine of Growth: Evidence from the MENA Region". Topics in Middle Eastern and North African Economies, electronic journal, 24, 1, Middle East Economic Association and Loyola University Chicago, 2022, http://www.luc.edu/orgs/meea/
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Copyright Statement
© The Author, 2022
Comments
Presentation of the articles in the Topics in Middle Eastern and North African Economies was made possible by a limited license granted to Loyola University Chicago and Middle East Economics Association from the authors who have retained all copyrights in the articles.