Evaluation of growth models in terms of selected MENA countries

Growth is one of the major issues of the economy. Growth plays a very important role for both developed countries and developing countries. Various growth models have been developed by economists in the studies conducted so far. The most basic growth models are: the neoclassical growth model and the internal growth model. It is an important problem to investigate which growth model is effective for countries. At this point, a good analysis of the basic dynamics of countries is essential for a healthy macroeconomic growth model. The aim of this study is to evaluate the existing growth models in the literature for selected MENA countries and to test which growth model is valid for these countries. In this direction, the phenomenon of growth is explained in the first part of the study and growth theories are included. Subsequently, the economic structure of the MENA countries was examined. Finally, the growth models were examined with dynamic panel data analysis methods in the study. In the study, the period between 1990-2020 for the neoclassical growth model and between 200 Dec-Dec between 2020 for the internal growth model were analyzed using annual data. In the study, cross-sectional dependence was analyzed with Breusch and Pagan (1980) LM and Deviation Corrected 𝐿𝑀𝑎𝑑𝑗 tests, homogeneity assumption Delta test and unit root test, cointegration relationship with CIPS test, PANEL ARDL and long-term coefficients were analyzed with a pooled mean group (PMG) estimator containing an error correction-based autoregressive distributed delay ARDL(p,q) model. In the study, it was concluded that the neoclassical growth model is not valid for the countries in question, the internal growth model is valid. Keywords: Growth, Selected MENA Countries, Panel ARDL.