Trade Openness and Economic Growth: A Vision Based on Export Growth for MENA Countries

Abstract

This paper examines the effect of trade openness on economic growth based on export growth as a key variable for the MENA region. We use different methods of estimating the coefficients relative to each variable on a panel of MENA countries over the period 1990-2014. The conclusion is that openness to international trade is generally beneficial for the countries of the MENA region. The effect of openness is also important and that is going through the growth of exports. According to the results, for these countries the diversification of exports is very important insofar as, in addition to its significant effect on economic growth, it is a major asset in supporting exports. Non-oil-exporting MENA countries are called upon to rely more on diversification to support and strengthen the pace of exports, which is a very important factor in taking advantage of the opening of trade. Strengthen the role of institutions and improve the attractiveness of high-tech foreign direct investments. Oil-exporting countries are also called upon to diversify their economies and boost the internal drivers of economic growth.