Technological Innovation and Cleaner Energy Consumption Drive Economic Growth in the MENA Region

A new study on environmental and sustainability indicators has found that technological innovation and cleaner energy consumption play a crucial role in driving economic growth and employment opportunities in the Middle East and North Africa (MENA) region. Using panel data from seven countries between 1990 and 2022, researchers from University Mohammed VI Polytechnic employed the Driscoll-Kraay Standard Errors (DKSE) model to investigate the impact of various determinants on economic performance and labor market dynamics. The findings reveal that technological innovation and urbanization contribute to economic growth while fostering employment opportunities, highlighting the importance of policy measures promoting technological advancements and sustainable energy use.

Key Takeaways:

• Technological innovation and urbanization contribute to economic growth while fostering employment opportunities in the MENA region.
• Manufacturing value-added and financial development emerge as crucial drivers of economic expansion in the region.
• Urbanization and total energy consumption exhibit mixed effects on economic performance and labor market dynamics.
• The study employs the Driscoll-Kraay Standard Errors (DKSE) model to estimate the effects of key determinants on economic performance and labor market dynamics.
• The researchers analyzed panel data from seven countries in the MENA region between 1990 and 2022.
• The study underscores the importance of policy measures promoting technological advancements and sustainable energy use to enhance economic resilience and job creation in the MENA region.

Statistics:

• The study employs panel data from seven countries in the MENA region between 1990 and 2022.
• The researchers estimate the effects of key determinants on economic performance and labor market dynamics using the Driscoll-Kraay Standard Errors (DKSE) model.
• The study finds that technological innovation and urbanization contribute to economic growth while fostering employment opportunities in the MENA region.
• The researchers report that manufacturing value-added and financial development emerge as crucial drivers of economic expansion in the region.
• Urbanization and total energy consumption exhibit mixed effects on economic performance and labor market dynamics.

Sources:

• Technological innovation and cleaner energy consumption impact on economic growth and employment in the MENA region. Environmental and Sustainability Indicators, 2025,27():100806.
• University Mohammed VI Polytechnic, School of Architecture, Planning and Design, University Mohammed VI Polytechnic, Benguerir, Morocco.