Title of the article in English Evaluating the Impact of Human Capital on Economic Growth using Panel Data Models for a Sample of Arab Countries during Period (2011-2023)

Abstract

This study aimed to measure the impact of human capital on economic growth for a sample of Arab countries (Libya, Egypt, Tunisia, Algeria, Morocco, UAE, Jordan, Iraq, and Bahrain), based on data covering the period 2011–2023. The analysis was conducted using the three Panel Data models: The Pooled Regression Model (PM), the Fixed Effects Model (FEM)، and the Random Effects Model (REM).To choose between these models, two tests were applied: The Lagrange Multiplier (LM) test to decide between the pooled regression and fixed effects models, and the Hausman test to decide between the fixed effects and random effects models. After confirming that the appropriate model was the Random Effects Model, the results revealed a positive and significant relationship between investment in human capital, represented by the number of students in primary and secondary education—and economic growth in the sampled countries. However, the results also showed no significant effect of economic openness (as an indicator of external factors) on economic growth. The study recommended the necessity of paying greater attention to education and vocational training and keeping pace with modern technological developments in line with the requirements of the labor market. This would lead to increased productivity and the achievement of higher economic growth rates.