This study provides new evidence regarding the nonlinear relationship between energy consumption and economic growth in the Middle East and North Africa (MENA) region for the 1990–2014 period. The empirical estimation is conducted using a dynamic panel threshold model. We found one threshold in the relationship between energy consumption and economic growth and one threshold in the relationship between carbon dioxide (CO2) emissions and economic growth. The results indicate that energy consumption positively and significantly affects economic growth in the low energy consumption regime. In contrast, it has a negative and significant impact on economic growth in the high energy consumption regime. Moreover, CO2 emissions are positively and significantly related to economic growth in the low regime of CO2 emissions. Nevertheless, the relationship between CO2 emissions and economic growth in the high CO2 emissions regime is negative and significant. Therefore, policymakers should implement other effective energy policies, such as stricter regulations on CO2 emissions, increase energy efficiency, and replace fossil fuels with cleaner energy sources to avoid unnecessary CO2 emissions and combat global warming. Future studies should identify the root causes of failures and issues in real time for inflation and link the energy–growth nexus to achieving the 2030 Sustainable Development Goals (SDGs) Agenda, Goal 7: Affordable and Clean Energy.
Since the 1990s, economists have looked for other significant determinants with a special focus on the quality of institutions to explain the heterogeneous trajectories of growth dynamics of countries around the world. In this regard, the current study provides the first empirical evidence in examining the relationship between institutional quality and economic growth in Jordan for the period of 1996-2017. The study uses an autoregressive distributed lag (ARDL) model as proposed by Pesaran et al. (2001). The empirical findings revealed that there is a co-integration (long-run co-movement) between economic growth and its determinants. Interestingly, there is a positive and significant relationship between institutional quality and economic growth in the long-run and shortrun. Moreover, the relationship between other explanatory variables such as investment, government size, inflation rate, and trade openness with economic growth is consistent with the standard economic theory. The policy implications from this study suggest that the Jordanian government should emphasize more on good institutional quality by improving all dimensions of institutional quality in sustaining their economic growth in the future.
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