Authors: Samer Abdelhadi; Ala' G. Bashayreh; Mohammad W. Alomari
Addresses: The Hashemite University, Department of Economics, Jordan ' The Hashemite University, Department of Economics, Jordan ' The Hashemite University, Department of Economics, Jordan
Abstract: This study aims mainly at investigating the relationship between export instability and economic growth in a sample of MENA countries. For this purpose, the study tested the stationarity of variables using Augmented Dickey-Fuller test, applied the Johansen co-integration method and estimated the error correction model using annual data over the period (1990-2016). Results show that there is a stable long run relationship between export instability and economic growth in Jordan and Egypt. On the other hand, results show a positive effect of export instability on economic growth for both KSA and Algeria on the long run but the effect is not significant. The study suggests further work and investigation to find innovative ways, to overcome the natural barriers of monopoly placed by developed countries as well as to diversify exports as a procedure that could mitigate the bad effect of export instability. It is recommended also to enhance investment which stimulates economic growth and hence overcomes the instability problems.
Keywords: economic growth; export instability; MENA countries.
International Journal of Economics and Business Research, 2019 Vol.18 No.4, pp.429 - 435
Received: 09 Aug 2018
Accepted: 01 Oct 2018
Published online: 03 Oct 2019 *