.Governance and Unemployment in the MENA Region: Empirical Evidence

Zaitoun, Noha Mahmoud Ashraf Mohamed Ali; Elshahawany, Dina Nabil Mohamed Ahmed

doi:10.21608/sjsc.2024.303925.1474

.Governance and Unemployment in the MENA Region: Empirical Evidence

نوع المستند : المقالة الأصلية

المؤلفون

¹ كلية التجارة جامعة الزقازيق

² كلية التجارة، جامعة الزقازيق

10.21608/sjsc.2024.303925.1474

المستخلص

Governance nowadays occupies an important stage in the development process. It is considered a crucial element that should be taken into consideration in the development strategy. Governance includes the process of how governments are selected and controlled, and the ability of government to set and implement policies effectively. Good governance help countries to improve economic growth, build human capital, and strengthen social cohesion (The World Bank, 2024). In recent years, policymakers and academics have been interested in determining concept, causes and consequences of governance, as well as its effects on macroeconomic indicators. The aim of this study is to investigate the relationship between governance and unemployment in the MENA region during 1996-2021 in both short and long term. The study investigates the relationship between unemployment rate and governance using its six important indicators by applying the Panel ARDL/ PMG model. Results show that only the government effectiveness would negatively impact the unemployment rate in the long run. The other pillars of governance have no effect on unemployment in both short and long run. Also, economic growth and foreign direct investment as other suggested explanatory variables of unemployment, have found to impact negatively unemployment rate especially in the long run.

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