Governance-constrained growth in the MENA region
ByRobert E. Looney
Pages 30

This chapter deals with an overview of Middle East and North Africa (MENA)'s recent growth experience relative to other parts of the world. It provides a review of the theoretical literature linking governance to economic growth and deployment. After a discussion of the existing empirical literature on the governance-growth linkages in the MENA region, a framework is developed for identifying governance constraints. While the concept of governance is rather intuitive, it has been used with various connotations. Specifically, 'governance' has been used to refer to entire systems of political institutions and traditions. Regulatory quality is one area of governance where there are encouraging signs for the MENA countries. Economic freedom, while defined largely in terms of economic policies and reforms, is interrelated with governance structures. One limitation of the empirical studies summarized above is that they do not systematically take into account the interrelationship between the main dimensions of governance and defence expenditure.