Assessing the Effect of Trade Openness on Health in the MENA Region: a Panel Data Analysis

This study examines the effect of trade openness on the health outcomes of 12 countries in the MENA (Middle East and North Africa) region: Algeria, Bahrain, Egypt, Jordan, Morocco, Kuwait, Oman, Qatar, Saudi Arabia, Tunisia, Turkey, and the UAE. By using a panel data investigation over 1970–2015, we check whether the trade of these countries with developed economies (using the proxy of G7 countries) and the rest of the world affects life expectancy and the infant mortality rate. We also assess the moderating effect of governmental corruption. Our findings show two interesting results. First, trade openness has a positive effect on health in the MENA region as it reduces the infant mortality rate and boosts life expectancy for both men and women. Second, better control over corruption and more focus on trade with developed countries would lead to more technology and information spillovers, which positively affect the health sector.