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A Framework of Sustainable Economics: Determining Driving Forces of the Sustainable Development in the MENA Region
Abstract
The Middle East and North Africa region has become one of the most important regions globally due to its energy reserves and geopolitical position. International organizations and researchers have discussed the challenge of sustainable development in the MENA region for many years. In this chapter, by examining the causal relationships between the four components of sustainable development, it is tried to understand better the interaction between sustainable development components in the region. Therefore, by collecting 92 institutional, bio-environmental, economic, and social variables, development indicators were constructed using the principal component analysis method for 2000-2020. This relationship was then tested using a Granger causality model and a dynamic data panel model. The results of this study show well that the economic development achieved at the expense of environmental degradation in this region failed to improve the non-economic components of sustainable development and provided the basis for their decline.
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