Structural Constraints on Economic Growth in Libya: A Multi-Theoretical ARDL Analysis
Keywords:
Economic Growth, ARDL, Resource Curse, Structural Transformation, LibyaAbstract
This study investigates the structural determinants of economic growth in Libya over the period 1990–2024 using an Autoregressive Distributed Lag (ARDL) framework. It integrates neoclassical, endogenous growth, structuralist, and institutional perspectives to provide a comprehensive analytical approach. The results confirm the existence of a long-run equilibrium relationship between economic growth, investment, industrial activity, oil rents, and human capital. Investment and industrial value added exert positive and statistically significant effects, while oil rents have a significant negative impact, supporting the resource curse hypothesis. Human capital remains statistically insignificant. Diagnostic and stability tests confirm the robustness of the model. The findings highlight that Libya’s growth remains structurally constrained by oil dependence and weak structural transformation
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