Impact of Macroeconomic Variables on the Economic Growth in the Middle East Countries

Abstract

This study investigated the impact of macroeconomic variables on the economic growth in the Middle East countries. The objectives of the research were to determine the relationship among GDP, inflation, oil and gas prices as well as competition on the economic growth in the Middle East. The study spanned between 2015 and 2019. The time series data for the region was obtained from the World Bank while data on ROA, together with ROE, was mined on the OPIC report. The GDP, oil price, interest rate, inflation, and completion were collected from OPIC and International monetary fund (IMF) Middle East report. The research used a panel regression method to analyses the impact of macroeconomic variables on the economic growth of Middle East countries. The results showed that the GDP, oil and gases prices, inflation as well as supply of money are the most significant macroeconomic variables of the growth of the economy. The government, together with authorities that regulate, is required to discover other resources apart from hydrocarbon to refresh its economy as well as engender cost-effective financial structure in view of the global low-carbon technology advancements and decarburization policies. The research has a useful, practical implication for the policymakers, regulators of the region. The government, together with authorities that regulate, is required to discover other resources apart from hydrocarbon to refresh its economy as well as engender cost-effective financial structure.