E-government, institutional quality and economic growth in the MENA region: Theoretical analysis and empirical evidence

This study investigates whether institutional quality and digital governance can effectively promote economic growth in the Middle East and North Africa (MENA) region, where structural inefficiencies and governance weaknesses have long constrained development. While institutions are widely recognized as long-term growth drivers (Acemoglu & Robinson, 2012), the role of e-government remains underexplored, particularly in emerging economies. To address this gap, we employ the system generalized method of moments (GMM) on a dynamic panel dataset of 11 MENA countries from 2002 to 2021. Our findings reveal that government effectiveness has a significant and positive influence on economic growth. In contrast, control of corruption and political stability show negative associations, potentially due to transitional reform costs. Other governance dimensions, such as regulatory quality, rule of law, and voice and accountability, are not statistically significant. Notably, the e-government development index (EGDI) displays the strongest and most robust positive effect on growth, emphasizing the strategic importance of digital transformation (Mohammed & Yacine, 2025). The study concludes that while institutional reforms are necessary, they must be complemented by coherent digital strategies. These results offer valuable policy insights for enhancing state capacity, improving governance, and accelerating inclusive development in MENA economies.