Human Development as a Strategic Driver of Economic Growth in the MENA Region amidst Contemporary Socioeconomic Challenges
Year: 2026
Type: article
Abstract: This study examines the impact of human development on economic growth in the Middle East and North Africa (MENA) region amidst evolving socioeconomic challenges using panel data from 18 countries over the period 2010–2021. Human development is captured by the Human Development Index (HDI), while economic growth is proxied by gross domestic product (GDP). To address the autocorrelation inherent in the sample panel data and the instability of socioeconomic systems, the analysis employs feasible generalized least squares (FGLS) and panel-corrected standard errors (PCSE) estimators, which demonstrated high explanatory power. The empirical results reveal a robust and statistically significant positive relationship between HDI and economic growth, highlighting the central role of investments in health, education, and living standards in fostering long-term economic performance as a strategy for overcoming regional socioeconomic challenges, consistent with endogenous growth theory. Among the control variables, labor force size contributes positively to growth, while inflation and gross fixed capital formation exhibit significant negative effects, suggesting structural inefficiencies, macroeconomic instability, and potential socioeconomic challenges in the region. Foreign direct investment (FDI) shows a negative association with growth in certain specifications, whereas trade openness is found to be statistically insignificant. Overall, the findings underscore the importance of prioritizing human development and institutional quality over reliance on traditional growth drivers to navigate contemporary socioeconomic challenges. The study provides policy-relevant insights for promoting sustainable and inclusive growth and enhancing the resilience of socioeconomic systems in the MENA region.
Source: SocioEconomic Challenges
Authors: Karim Soussou, Imen Ben Salem
Institution: Tunis University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7155507358