Economic Growth Effects of Health and Education Expenditures: Does ‎Corruption Matter in The MENA Region?

  • Authors

    • Mohammed EL-KHODARY Department of ‎Economics and Management of Organizations, Sidi Mohamed Ben Abdellah University, Fez, Morocco https://orcid.org/0009-0009-8893-4169
    • Fatima Zahra Tourdi Department of ‎Economics and Management of Organizations, Sidi Mohamed Ben Abdellah University, Fez, Morocco
    • Soukaina Alami Harrak Department of ‎Economics and Management of Organizations, Sidi Mohamed Ben Abdellah University, Fez, Morocco
    • Abderrazak El Hiri Department of ‎Economics and Management of Organizations, Sidi Mohamed Ben Abdellah University, Fez, Morocco
    https://doi.org/10.14419/kf2em421

    Received date: July 7, 2025

    Accepted date: August 16, 2025

    Published date: August 26, 2025

  • Corruption CPI Index; Economic Growth; Health and Education Expenditures; MENA Region; Panel Models

  • Abstract

    This study analyzes the impact of health and education expenditures on economic growth ‎in the MENA region, focusing particularly on the role of corruption in these outcomes. ‎Using panel data from 2012 to 2023, we assess the impact of public investment in these ‎sectors on GDP under varying levels of corruption. The CPI rankings are used to ‎categorize corruption levels, analyze the impact of differences in these levels, and assess the ‎moderating impact of corruption levels on the effectiveness of health and education ‎spending in promoting GDP growth. Our main findings demonstrate that health and ‎education spending positively impact economic growth ($10.30 billion and $54.25 billion, ‎respectively), but this effect is significantly moderated by the degree of corruption. It shows ‎a much stronger negative impact on education spending ($61.25 billion) than on health ($8.26 billion). While both are affected, the success of education investment is far more ‎sensitive to corruption levels. Additionally, each additional point in the CPI World ranking ‎is associated with a decrease in GDP of $565.44 million. The second level of corruption (25 ≤ CPI ≤ 50) leads to a decrease in GDP of $46.16 billion, while the first level of ‎corruption (CPI < 25) leads to a loss of $107.44 billion. These findings can help ‎policymakers to design and implement targeted reforms that improve governance structures ‎and optimize the allocation of public resources through a rigorous combat against ‎corruption.

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    EL-KHODARY, M., Tourdi, F. Z. ., Alami Harrak, S., & El Hiri , A. (2025). Economic Growth Effects of Health and Education Expenditures: Does ‎Corruption Matter in The MENA Region?. International Journal of Accounting and Economics Studies, 12(4), 706-715. https://doi.org/10.14419/kf2em421