Public service delivery dilemma and economic growth challenges in the MENA Region

The present paper investigates the impact of public service quality on economic growth in 15 MENA countries over the period 1996-2018, through the use of panel data analysis, including Fixed Effects Model, Random Effects Model and Hausman test. The Hausman test favors the fixed effect model, which c...

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Main Authors: Siham MATALLAH, Lahouari BENLAHCENE
Format: Article
Language:English
Published: General Association of Economists from Romania 2021-12-01
Series:Theoretical and Applied Economics
Subjects:
Online Access: http://store.ectap.ro/articole/1565.pdf
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author Siham MATALLAH
Lahouari BENLAHCENE
author_facet Siham MATALLAH
Lahouari BENLAHCENE
author_sort Siham MATALLAH
collection DOAJ
description The present paper investigates the impact of public service quality on economic growth in 15 MENA countries over the period 1996-2018, through the use of panel data analysis, including Fixed Effects Model, Random Effects Model and Hausman test. The Hausman test favors the fixed effect model, which clarifies that the government effectiveness index exerts a highly significant positive impact on economic growth in 15 MENA countries. While the government spending (freedom from government) exhibits a statistically insignificant positive effect on economic growth in the selected countries. Based on these findings, it could be concluded that the ideal reconciliation between delivering high-quality public services and keeping public spending low and efficient, is the perfect recipe for the MENA region’s economic success. It is also recommended that MENA governments should foster their cooperation with the private sector in the delivery of education and health care services, besides tackling administrative reforms in alignment with the goal of providing efficient public goods and services. Furthermore, anti-corruption policies should be knitted, taking into serious consideration the promotion of institutional quality and optimization of government size.
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spelling doaj.art-5b9197f139fa4bfca3c2b487278ebef92022-12-22T04:03:37ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292021-12-01XXVIII4315018418678Public service delivery dilemma and economic growth challenges in the MENA RegionSiham MATALLAH0Lahouari BENLAHCENE1 University of Oran 2, Algeria University of Oran 2, Algeria The present paper investigates the impact of public service quality on economic growth in 15 MENA countries over the period 1996-2018, through the use of panel data analysis, including Fixed Effects Model, Random Effects Model and Hausman test. The Hausman test favors the fixed effect model, which clarifies that the government effectiveness index exerts a highly significant positive impact on economic growth in 15 MENA countries. While the government spending (freedom from government) exhibits a statistically insignificant positive effect on economic growth in the selected countries. Based on these findings, it could be concluded that the ideal reconciliation between delivering high-quality public services and keeping public spending low and efficient, is the perfect recipe for the MENA region’s economic success. It is also recommended that MENA governments should foster their cooperation with the private sector in the delivery of education and health care services, besides tackling administrative reforms in alignment with the goal of providing efficient public goods and services. Furthermore, anti-corruption policies should be knitted, taking into serious consideration the promotion of institutional quality and optimization of government size. http://store.ectap.ro/articole/1565.pdf the quality of public service provisioneconomic growthmena countriespanel data analysis
spellingShingle Siham MATALLAH
Lahouari BENLAHCENE
Public service delivery dilemma and economic growth challenges in the MENA Region
Theoretical and Applied Economics
the quality of public service provision
economic growth
mena countries
panel data analysis
title Public service delivery dilemma and economic growth challenges in the MENA Region
title_full Public service delivery dilemma and economic growth challenges in the MENA Region
title_fullStr Public service delivery dilemma and economic growth challenges in the MENA Region
title_full_unstemmed Public service delivery dilemma and economic growth challenges in the MENA Region
title_short Public service delivery dilemma and economic growth challenges in the MENA Region
title_sort public service delivery dilemma and economic growth challenges in the mena region
topic the quality of public service provision
economic growth
mena countries
panel data analysis
url http://store.ectap.ro/articole/1565.pdf
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