The aim of this paper is to examine the empirical relationship between the knowledge-based economy and economic growth in MENA countries. We are interested in identifying pillars linked with the transition to a knowledge-based economy that is related to growth performance. We used a growth model in Barro and Sala-i-Martin framework (1995) for the period of 2010-2015. It includes a panel data set that consisted the annual economic growth rate for selected MENA countries and, within the theoretical and empirical framework, applied the four indicators used for identifying the situation of the knowledgebased economy. The empirical results obtained using the generalized method of moments dynamic panel indicates institutions, human capital and research, infrastructure, and business sophistication to be the pillars of knowledge-based economy that influence a significant and positive economic growth in MENA countries. We suggest that governments in this region should consider the knowledge-related policies for accelerating transiting to the knowledgebased economy and improving economic performance.Keywords Convergence . Dynamic panel . Generalized method of moments . Growth performance . Knowledge-based economy . MENA region J Knowl Econ https://doi.org/10.1007/s13132-018-0522-4Highlights:• We use a dynamic GMM panel model for analysis of conditional convergence in MENA region.• We assess the effects of knowledge-based economy indices on economic performance in MENA region.• The institutional structure and human capital and research have positive effects on growth performance in MENA region.• The effect of infrastructure and business sophistication on economic growth in MENA countries.
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