Oil Production and Economic Growth: Panel Evidence from MENA

Authors

  • Harith Adnan Mohammed University of Kirkuk, College of Administration and Economics, Department of Economics https://orcid.org/0009-0001-0028-3560
  • Ali Nomas Nasser - Imam Al-Kadhim University College, Iraq

DOI:

https://doi.org/10.21919/remef.v21i4.1414

Keywords:

Driscoll–Kraay. Keywords, Oil production, Economic growth, Unemployment, Human Development Index

Abstract

This study examine at how oil production, unemployment and human development affect growth in Iraq, Saudi Arabia and Algeria from 1990 to 2023. The main goal is to see if oil output can still drive GDP when the labor market is human development varies. We use panel data and a fixed effects model with Driscoll–Kraay robust errors to fix problems with unequal variance, serial correlation and cross sectional dependence. The results show that oil production has a statistically significant effect on GDP per capita while unemployment has a negative effect. Human development, measured by the Human Development Index has the positive impact on growth. The study also finds that each country reacts differently to oil price shocks showing that structural and institutional differences matter. We recommend diversifying the economy reforming labor markets and using oil money to build capital. We note that we did not include factors or governance indicators. This study is original because it brings together oil production, unemployment and human development variables into one model giving evidence for sustainable strategies, in oil dependent economies.

Author Biography

Harith Adnan Mohammed, University of Kirkuk, College of Administration and Economics, Department of Economics

 

Dr. Hareth Adnan Mohammed is an Assistant Professor in the Department of Economics, College of Administration and Economics, University of Kirkuk, Iraq. His research interests focus on energy economics, econometrics, and the socioeconomic impacts of oil production on economic growth in the MENA region.

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Published

2026-09-17

Issue

Vol. 21 No. 4: October - December 2026

Section

Research and Review Articles

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