THE IMPACT OF DOMESTIC INVESTMENT, INNOVATION AND R&D ON ECONOMIC GROWTH IN MENA COUNTRIES

Sayef Bakari; Malek El Weriemmi; Nadia  Ben Yedder

Sayef Bakari Department of Economics Sciences, Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, (Tunisia)
Malek El Weriemmi Research Unit "Enterprise Economy Environment" Higher Institute of management, University of Gabes, Tunisia.
Nadia Ben Yedder Graduate College of Commerce of Tunis (ESCT). University of Manouba Tunisia

Abstract

The aim of this paper is to investigate the impact of domestic investment, innovation and R&D on economic growth in the case of MENA Countries over the period 2002 – 2021. By using gravity model statistic, found that domestic investment has a positive impact on economic growth. However, innovation and R&D have not any impact on economic growth. It is true that our results indicate that domestic investments are a source of economic growth, but the lack of R&D investments, the lack of collaboration between universities and businesses, the low quality of education and regulatory obstacles are the causes that make innovation and investment in R&D have an adverse impact on economic growth. MENA countries need to invest more in R&D, promote cooperation, improve the quality of education and ease regulatory barriers.