Education and Economic Growth in the MENA Region: Some New Evidence

Abstract

The purpose of this paper is mainly to analyze the long-run relationship between education and the economic growth in MENA region. To ensure this, we have analyzed the evolution of some quantitative and qualitative indicators of the human capital within MENA countries including comparisons with other developing regions during the fifties by using the latest version of Barro and Lee (2010) dataset. Then, by using the most appropriate panel data techniques, we have empirically tested the impact of education upon the economic growth for the period 1975-2010 using several indicators for the human capital. The sample includes 15 countries divided into two groups (middle-income countries and high-income countries). The findings have indicated that although some progress is noted, much is remained to be done to ensure education as a large scale project of investment. Empirically, the results have shown that the effect of education depend on the measure used and on the relevant sub-group.

Key words: education, economic growth, MENA