Series Info:Journal of International Business & Finance;Vol. 4, No. 2, (2012): 83-91
Type:Article
Keywords:October University for university of overall contestability
,
growth
,
economic stress
,
Arab countries
,
causality
Abstract:
This study examines the effects of overall contestability OCI
on economic growth in some Arab countries. The econometric
methodology follows the cross-country studies with empirical application
to a panel of 4 Arab Spring countries observed over the period 1995 to
2011. Panel regressions are carried out using the fixed-effects model. The
aim is to provide an empirical evidence for the driving forces of Arab
Springrevolutions. The results show that overall contestability is
significantly and negatively related to GDP percapita. By testing the
relation between overall contestability and principal economic stress
variables, inflation provided significant negative relation but
unemployment did not. Adding Granger causality tests showed that:
first a unidirectional relationship between GDP per capita and inflation,
and second a unidirectional relation between each ofinflation and
unemployment on one hand and OCI on the other hand.