Institutional Quality and Sustainable Development: Empirical Study in 10 Arab Countries

Abstract

In this paper, we analyse the impact of the institutional quality on the sustainable development in 10 Arab countries during the period 1995-2019. Despite the significant improvement that have known some countries in recent years in terms of development indicators, the Arab authorities still require more efforts to improve their governance and to enhance the developmental impact of oil revenues. However, the deterioration of the institutional environment indicators remains the biggest obstacle to achieve the development goals, and limits the effectiveness of economic reforms. Therefore, we found from the empirical study that there is a positive significant effect on sustainable development (expressed by adjusted net saving) for capital per capita, oil rents, per capita and trade openness, while there is a negative significant effect for gross national income, and total natural resources rents. However, the institutional indexes have a positive and insignificant impact, indicating that there is an evidence of a weak political structure and weak political awareness of Arab societies.

أثر العوامل المؤسسية علي النمو الإقتصادى بالتطبيق على جمهورية مصر العربية

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