The Impact of Economic Diversification on Economic Growth: Econometric Study Using Panel Data Model on the Arab Countries from 1999 to 2020

Abstract

       This research aims to examine the relationship between economic diversification and economic growth by applying the panel data model to six oil and non-oil Arab countries: Algeria, Saudi Arabia, United Arab Emirates, Tunisia and Morocco, Egypt during the period (1999-2020). The results of the study confirmed that the fixed effects model was the appropriate model to test this impact. Its results showed a positive impact between the economic diversification and growth variables and that the relative impact of the services sector was greater than that of industry and agriculture, while the joint integration results showed a lack of long-run relationship between the variables in the model.