The Effect of Exports and Imports on Economic Growth in the Arab Countries: A Panel Data Approach

Abstract

The study focused on the effect exports and imports on economic growth in the Arab countries during the period 1995 to 2013. The study used panel data approach in 17 countries (Jordan, United Arab Emirates, Bahrain, Tunisia, Algeria, Saudi Arabia, Sudan, Oman, Qatar, Kuwait, Lebanon, Egypt, Djibouti, Mauritania, Morocco, Yemen and Palestine). The study used panel data approach by E views program. The study found that the effect exports and imports have positive effect of economic growth in the Arab countries during the period 1995 to 2013. The study recommended it is important indicator for measuring the efficiency and effectiveness of the work element in achieving a certain level of the output in the production process. There is need to increase the imports of technology for increasing labor productivity which can directly promote economic growth, and thus improve the standards of living in the Arab countries.