Abstrakt:
Background/Objectives: Many economies are on the trajectory of alternative
growth drivers other than conventional capital and labor. Access to credit facilities is
a pertinent indicator of economic growth. In line with the United Nations Sustainable
Development Goals (UNSDGs-8) agenda, the national goal for sustainable development for most economies and Arab economies is no exception. Therefore, the current
study adopts a traditional growth model by exploring the relationship between gross
domestic product (GDP) per capita, credit for private sectors, ratio of exports, real GDP,
and per labor force participants for selected Arab economies annually from 2001 to
2020.
Research design: This study leverages the Fourier Kwiatkowski–Phillips–Schmidt–
Shin (KPSS) unit root test and second-generation panel econometrics as estimation
techniques, such as Westerlund and Edgerton panel cointegration test, and the use of
two estimators, namely the augmented mean group (AMG) and common correlated
error mean group (CCEMG), to obtain robust results.
Findings: Empirical fndings from Westerlund and Edgerton panel cointegration
tests validate the long-run equilibrium relationship among the outlined variables.
Further empirical results indicate that the share of exports is negatively signifcant with
economic growth in countries such as Kuwait, Lebanon, Tunisia, and Jordan. Additionally, savings and labor force participation have a positive relationship with economic
growth in individual countries such as Algeria and Bahrain. As per the panel, there is no
signifcant relationship between labor force participation and economic growth. This
indicates that the skilled labor force enhanced economic growth.
Conclusions: These fndings come with inherent far-reaching policy suggestions for
economies and panels. Further details on country-specifc policy actions are presented
in the concluding section.
