Divorce and its impact on economic growth in MENA countries

Abstract

Abstract

Divorce, as an expanding social phenomenon, not only has profound consequences for the structure and cohesion of the family institution but also can significantly impact macroeconomic variables, including economic growth. In recent decades, this phenomenon has been steadily rising, especially in developing countries such as those in the Middle East and North Africa (MENA) region. This study empirically investigates the impact of the divorce rate on economic growth across selected MENA countries for the period 2000 to 2023. Employing a panel data regression analysis, this study examines the linkages between these variables based on an econometric model inspired by the framework of Paweł Jarankowski and Jan Żak Zdaoutinger (2017). The model's findings indicate that a higher divorce rate has a significant negative effect on economic growth. In contrast, increases in physical investment and the labor force participation rate exert a positive and significant effect on the economic growth of the studied countries. These results highlight the growing importance of addressing the broader macroeconomic consequences of divorce and underscore the need for developing effective social and economic policies to mitigate its adverse impacts and support sustainable economic growth.