Investigating the Relationship between Economic Growth, Energy Consumption and Human Development in Selected MENA Countries

Mohamadi, Vahid; Mozafari Shamsi, Hajar; Asadi, Freydon

doi:10.22054/jiee.2019.10490

Investigating the Relationship between Economic Growth, Energy Consumption and Human Development in Selected MENA Countries

Document Type : Research Paper

Authors

vahid Mohamadi ¹

Hajar Mozafari shamsi ²

Freydon Asadi ³

¹ M.A. in Oil & Gas Economics, Petroleum University of Technology

² M.A. in Economic Sciences, Islamic Azad University of Isfahan (Khorasgan) Branch

³ Faculty member and director of energy group in Islamic consultative assembly research center

https://doi.org/10.22054/jiee.2019.10490

Abstract

Human development is one of the main aspects of development in each country in which different factors could influence this indicator. In this research, interrelationship between gross domestic product (GDP), energy consumption per capita and HDI and their control factors investigate by using simultaneous-equation panel data models based on Generalized Method of Moments (GMM) for a panel of 12 MENA countries during 1997-2015. Findings of this study show that there is a mutual positive and significant relationship between GDP, energy consumption and HDI of the MENA countries. Labor force and investment volume both have positive and statistically significant impact on GDP. On the other hand, Openness of the economy has positive and CO_2 emission have negative relation with HDI of the MENA countries. Also, population and financial development variables have significant and negative relation with energy consumption

Keywords

Gross Domestic Product

Energy Consumption

Human Development

Simultaneous Equations

Generalized Method of Moments