EconPapers    
Economics at your fingertips  
 

Demographics in MENA Countries: A Major Driver for Economic Growth

Yeganeh Forouheshfar, Najat El Mekkaoui () and Hippolyte d’Albis ()
Additional contact information
Hippolyte d’Albis: Paris School of Economics

Authors registered in the RePEc Author Service: Hippolyte d'Albis ()

De Economist, 2020, vol. 168, issue 2, No 3, 183-213

Abstract: Abstract MENA region is undergoing rapid demographic transition, where 50% of the population is under the age 25 and high youth unemployment rates are argued to be one of the main sources of political instability. In this paper we evaluate the economic impact of the demographic transition for selected MENA countries, namely: Iran, Morocco and Egypt who experience different speeds of transition. We have developed a general equilibrium overlapping generations model with a cost of capital mobilisation as a proxy for financial markets’ efficiency and simulated the demographic trends in each country. We find that the demographic shift will be an important driver for growth in the upcoming decades. Furthermore, our results show that a more efficient financial sector leads to better economic performance. Specifically, youth are the primary beneficiaries: an increase in the financial sector efficiency can reduce up to 8 percentage points of the the unemployment rate for the youngest age group.

Keywords: Development; MENA region; Financial efficiency; OLG model; Demographic transition (search for similar items in EconPapers)
JEL-codes: J11 E17 O16 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10645-020-09357-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Demographics in MENA Countries: A Major Driver for Economic Growth (2020)
Working Paper: Demographics in MENA Countries: A Major Driver for Economic Growth (2020)
Working Paper: Demographics in MENA countries: a major driver for economic growth (2019) Downloads
Working Paper: Demographics in MENA countries: a major driver for economic growth (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:decono:v:168:y:2020:i:2:d:10.1007_s10645-020-09357-y

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10645/PS2

DOI: 10.1007/s10645-020-09357-y

Access Statistics for this article

De Economist is currently edited by Rob Alessie, Bas ter Weel, Casper van Ewijk, Jan C. van Ours and Frank de Jong

More articles in De Economist from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-04-15
Handle: RePEc:kap:decono:v:168:y:2020:i:2:d:10.1007_s10645-020-09357-y