Energy intensity, oil prices and economic growrth in mena countries

Abstract

This study examines the intricate relationship between energy intensity, oil price fluctuations, and economic growth in the Middle East and North Africa (MENA) region. Using panel data from 2000 to 2021 across seven MENA countries, the research explores the impact of these factors on economic performance. The econometric analysis reveals a significant negative relationship between energy intensity and economic growth, highlighting the importance of energy efficiency strategies for the region. Oil price fluctuations demonstrate a positive impact on economic growth, particularly for oilexporting countries. However, oil-importing nations may experience adverse effects from price increases. Additionally, the study emphasizes the positive contributions of human capital and infrastructure development to sustainable economic growth. Based on thse findings, the research proposes recommendations for policymakers and stakeholders in the MENA region. These include prioritizing energy efficiency, promoting renewable energy sources, fostering economic diversification, investing in human capital, and strengthening infrastructure. The study concludes by acknowledging limitations and suggesting directions for future research to further refine the understanding of these complex interrelationships and develop effective strategies for achieving sustainable economic development in the MENA region.