Factors Affect Economic Well-being: Human Developing Index for Selected Arab Countries
DOI:
https://doi.org/10.35516/jjes.v11i1.1257Abstract
Objectives: This study aims to analyze the impact of several factors on economic well-being in numerous Arab countries, using the Human Development Index issued by the UNDP. These countries include Egypt, Algeria, Sudan, Iraq, Morocco, Yemen, Jordan, Tunisia, Mauritania, Djibouti, Comoros, and Lebanon between 2009 and 2019.
Methods: The analysis is based on Panel data using the Feasible Generalized Least Squares regression (FGLS), and several necessary tests are applied to determine the appropriate estimation method.
Results: The study's results show that globalization led to an improvement in welfare levels. Furthermore, the results indicate that the Corruption Index reduces welfare levels. In contrast, foreign direct investments did not show a statistically significant relationship with the Human Development Index during the selected period for the chosen countries. However, the results verify that government expenditures have a positive impact on improving welfare levels in these countries.
Conclusions: The study underscores the importance of combating corruption by avoiding repression and dictatorship and curbing the control of influential entities over power and effective government. In addition, there is a need to strengthen globalization incentives by facilitating international communication processes, easing visa procedures, and encouraging entry and exit from these countries. The study also emphasizes the need for media openness, technology dissemination, and improving trade openness.
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