Document Type : Article-Based Dissertations
Authors
1 Ph.D. Student in Health Economics, Department of Economic Development and Planning, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran.
2 Associate Professor, Department of Economic Development and Planning, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran
Abstract
The primary aim of this study is to investigate how freshwater resources and democracy influence the economic growth of two distinct sets of Middle Eastern and OECD countries from 2000 to 2021. Three panel models, including fixed effects, standard generalized method of moments (GMM), and dynamic panel GMM, are employed for this purpose. Managed water resources, democracy index, human development index, government expenditures, gross fixed capital formation, total population growth rate in working age, external total factor productivity growth rate, and capital depreciation rate are used as independent variables, while per capita gross domestic product (GDP) serves as the dependent variable. The findings reveal that managed water resources and democracy exert a positive and significant impact on economic growth in OECD countries, whereas their impact is entirely negative and significant in Middle Eastern countries. The disparity in the effect of managed water resources and democracy on economic growth between OECD and Middle Eastern countries can be attributed to various factors, encompassing geographical, economic, social, political, and cultural conditions. Moreover, the Human Development Index exhibits a positive and substantial influence on economic growth in both OECD and Middle Eastern countries, with a more pronounced effect observed in OECD nations. Additionally, government expenditures and gross fixed capital formation have a positive and significant effect on economic growth in both Middle Eastern and OECD countries, with a stronger impact seen in OECD nations. Conversely, the total population growth rate in working age, external total factor productivity growth rate, and capital depreciation rate also positively and significantly affect economic growth in both Middle Eastern and OECD countries.
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