The role of infrastructure investment and financial development in driving industry growth in MENA Region: A comparative analysis
Keywords:
Infrastructure Investment, Financial Development, Industry Growth, MENA Countries, Structural Equation ModelingAbstract
This paper examines the role of infrastructure investment and financial development in driving industrial growth in MENA countries, focusing on industrial value added, industrial employment and the share of manufacturing in GDP. Using dynamic panel data (DPD) and structural equation modeling (SEM) from 2000 to 2021, the study analyzes six MENA economies: Algeria, Egypt, Jordan, Morocco, Saudi Arabia and Turkey. The results show that infrastructure investments such as transport networks and digital connectivity significantly increase industry growth by reducing operating costs and expanding market access. Financial development also plays a crucial role improving access to capital and supporting technology adoption although the impact varies by country. The SEM analysis highlights indirect pathways and it shows that infrastructure and financial systems mutually reinforce industry growth through increased employment and productivity. The results suggest that targeted infrastructure investments combined with financial sector reforms can promote sustainable industrial growth and provide practical insights for policymakers in the MENA region.
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Copyright (c) 2024 Ahmed Amine Sadallah, Mohamed Guerrache

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