The Investigation of Effect of Globalization and Trade Liberalization on Total Factor Productivity Growth in the MENA and EU15 Countries

Today, productivity is considered as a culture and prospect in all areas of human's work and life and is the source of progress and economic development. With regards to the progressing trend of globalization and the increase in membership of the countries in the WTO, the research investigates the effect of globalization and trade liberalization on productivity growth on two groups: 12 countries in the Middle East and North Africa (MENA) and 15 countries of the Europe :union:'s members (EU). Panel Data Method with Random effects is used study this relationship during the period of 2000-2013. The results show that globalization and trade liberalization have positive effects on improvement of productivity growth in both groups, but the coefficients for the Europe :union:'s members are greater than the MENA countries. In other words, increasing the degree of trade liberalization and globalization has had more effect on improvement of the productivity in Europe :union: countries than members of MENA.