Moderating role of government effectiveness and innovation in sustainable economic growth relationship in Middle East & North Africa countries

Abstract

AbstractThis article examines the impact of government effectiveness (GE) and technological innovation on economic growth and environmental degradation in Middle East & North Africa countries. The study utilizes panel data from the period of 2002–2020. The findings indicate that there is a significant and positive relationship between innovation (INV) and CO2 emissions (0.0244), while GE has a significant and negative impact on CO2 emissions (−0.5753). In a similar vein, it can be observed that both INV and government efficacy exert a substantial and favorable influence on the process of economic growth (0.0353 and 0.0773). Furthermore, the interaction of INV and GE showed a noteworthy moderating effect on CO2 emissions (−0.1581). Conversely, it exhibited a more pronounced positive influence on economic growth (0.1122). The study highlights that synergizing INV with GE is essential for attaining sustainable economic growth in the studied area.