Impact of Peace and Economic Freedom on the Prosperity of Middle East and North African Countries

Abstract

Significant improvements have been experienced in global prosperity in the recent years, but there have been considerable differences at prosperity levels of different regions. Western Europe and North Africa were the most prosperous regions of the world in 2017, while Sub-Saharan Africa and Middle East and North Africa were the least prosperous regions of the world in 2017. However, Middle East and North Africa and Sub-Saharan Africa are also the least peaceful regions of the world. In this regard, this chapter analyzes the effect of peace and economic freedom on prosperity in Middle East and North African countries with panel data analysis. The results of empirical analysis revealed that both peace and economic freedom are significant determinants of prosperity.