The Impact of Economic and Social Policies on Poverty and Inequality in the MENA Region: An Econometric Analysis of North African Countries (Tunisia, Algeria, Morocco, Libya, and Egypt)

Abstract

This article provides an econometric evaluation of the effectiveness of economic and social policies in reducing poverty and inequality in the MENA region, with a specific focus on North African countries, namely Tunisia, Algeria, Morocco, Libya, and Egypt. In a context characterized by persistent socio-economic disparities and heterogeneous institutional dynamics, the objective is to assess the extent to which public policies have contributed to improving living conditions and narrowing income gaps. The methodological approach is based on a panel data econometric analysis covering key poverty and inequality indicators, as well as fiscal, social, and macroeconomic policy variables. The study highlights the presence of heterogeneous effects across countries and time periods, revealing that policy effectiveness is strongly influenced by institutional quality, the structure of public expenditure, and the degree of economic openness. The results suggest that, despite significant efforts in implementing social policies, their impact on reducing inequality remains limited and unevenly distributed. Poverty, although declining in some countries, remains structural and highly sensitive to economic and political shocks. The study therefore emphasizes the need for better coordination between economic and social policies, as well as more efficient targeting of public programs. Finally, this paper contributes to the empirical literature on development in the MENA region by offering a comparative econometric analysis of North African countries, providing deeper insight into the structural determinants of poverty and inequality.