Blue Economy Determinants and Economic Growth: Implications Upon MENA Region Countries

Abstract

Blue economy refers to the use and the activities related to sea, oceans and coasts where economic growth is achieved for both industrialized and developing countries, where creation of jobs and enhanced life, with an additional conservation area such as carbon storage, sea and ocean protection and biodiversity. This research is conducted to measure the impact of the blue economy factors on economic growth of MENA region countries and to discuss the different challenges and opportunities that results from the transition to sustainable Blue Economy. With the hypothesis that states that there is a positive impact of blue economy factors on the economic growth of MENA region countries in both short run and the long run and contribute positively to the achievement of Goal 14 in the sustainable development goals stated by the United Nations, that states conservation and sustainably use of oceans, seas, and marine resources for sustainable development. By using an econometric model the study provides a quantitative analysis of the relationship between blue economy factors and economic growth, contributing to the empirical understanding of this relationship. The study found that Total Fishery Production and Agriculture, forestry, and fishing, (value added) have a positive impact on economic growth in both the long and short runs. However, the Aquaculture production variable was found to be weakly exogenous in the long run, indicating that there is no causality running from Aquaculture production to economic growth.