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on Arab World |
| By: | Bascavusoglu-Moreau, Elif |
| Abstract: | Although very dynamic and flexible, Turkish SMEs are less innovative than their European counterparts. The analysis undertaken in this paper allows to assess whether this low level of innovative activities is related to a lack of entrepreneurial behaviour |
| Keywords: | entrepreneurship, national systems of innovation, SMEs, innovative capabilities, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-54&r=ara |
| By: | Shaikh, Salman Ahmed |
| Abstract: | This book provides a holistic socio-economic framework working in conformity with the Islamic principles. Chapter 2 builds the ground for the proposed framework by discussing the foundations of the ethical precepts of Islam. It discusses the thesis of religion, answers some of the questions in the comparative study of religion and tries to resolve few of the misconceptions about the faith of Islam. Chapter 3 outlines the economic teachings of Islam with regard to earning and spending. It discusses at length the ideals Islam set before its adherents in the ethical sphere of life. The ethical principles are discussed based on the study of relevant Quranic text and the narrations of Prophet Muhammad (PBUH). Chapter 4 studies the comparative economic systems. It analyzes Capitalism, Socialism, Mixed Economy and Islamic economic system. Chapter 5 introduces the salient features of the proposed economic framework with special focus on fiscal reforms. It discusses the potential of the institution of Zakat to meet fiscal needs of the government and to assist it in doing away with deficit financing, fiscal bleeding, crowding out private sector and reducing deadweight loss by parting the way with private sector so as to ensure market economy operating on its own as far as possible and playing an active regulatory role. Chapter 6 introduces the monetary reforms. It discusses how savings would feature despite discontinuation of interest, how inflation will be checked with central banks not having at their disposal conventional OMO, how liquidity will be managed in banking sector when a central bank wants to inject liquidity or mop up funds. How and to what extent the institution of Zakat would enable the government to meet its fiscal targets and does not crowd out private sector with public borrowing. How balance of payments and exchange rate stability can be managed in an interest free economy. If in the short term, the government or central bank needs alternative source of revenue other than Zakat, they can issue GDP linked bonds. This could replace T-bill and provide a base instrument for OMO and liquidity management in the banking and financial sector. Chapter 7 introduces the currently practiced Islamic Banking and Finance. Since Islamic economic principles have more prominently been used in banking and finance, much of the discussion centers on Islamic banking and finance in lieu of analyzing the existing practices and then in the next chapter, preferable alternatives in areas where shortcoming is observed and need for improvement is felt are suggested. Chapter 8 discusses the financial system in the proposed framework with the role of institutions and the discussion on comprehensive need fulfillment mechanisms to serve every major need of a sophisticated contemporary financial system. Some important novel changes are recommended, such as introduction of options in mortgage financing, which will allow the bank to separate the tenancy and sale contract in a distinctive way. This will still ensure that it locks the sale with the borrower or with the third party without making both contracts dependent on each other. It will benefit the bank as well as the borrower, who will have an option but not an obligation to buy the asset at maturity. The modified role of bank entering in a Mudarabah contract as a “Rabb-ul-maal” (investor) will ensure that the bank takes on operational risk. It will enable the resources to go into productive avenues rather than in financial instruments. This modification will generate employment and productive activities in the economy in a more direct manner. The division of Mudarabah corporate and Mudarabah consumer will target two very distinct markets and will result in channeling of funds from saving surplus units to saving-deficient units. Reforms in equity markets and alternatives for insurance are also suggested. Chapter 9 introduces feasibility and structure of Micro credit as an alternative for interest based micro finance. It discusses how the potential obstacles in the form of lack of trust, funding commitment, lack of collateral arrangement, lack of documentation etc would be handled. |
| Keywords: | Interest Free Economy; Islamic Economy; Islamic Economic System; Islamic Monetary Policy; Islamic Fiscal Policy; Interest; Zakat; Riba; Usury; Development; Redistribution; Economic Systems; Financial System; Financial Intermediation; Saving; Investment. |
| JEL: | E0 A1 H2 G0 B5 |
| Date: | 2010–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23000&r=ara |
| By: | Shaikh, Salman Ahmed |
| Abstract: | Since interest is prohibited in Islam, the government in an Islamic economy cannot issue interest based T-Bills, T-Bonds and/or obtain interest based sovereign debt. Based on the literature review, it is argued that neither Prophet Muhammad (P.B.U.H) nor the pious Caliphates (rta) levied any taxes other than Zakah. Accordingly, this study explores the sources of revenue for a government in an Islamic economy. In discussing sources of tax revenue, it is maintained that Zakah is the only tax the government in an Islamic economy can levy. Nevertheless, the government can charge service/performance based fees, duties, charges etc in providing public goods. Furthermore, the profitable operations of state owned enterprises form an important part of non-tax revenues. It is also analyzed that how the non-profitable public institutions like police and courts will be funded. This study also discusses that how the government can finance its deficit keeping in view that interest is prohibited in Islam and Zakah rates are very low and Zakah base is very narrow as per common understanding. The study also gives brief insights into how much Zakah can be collected in Pakistan. Finally, it suggests that the nominal GDP growth linked rate of return can be used to benchmark domestic and external loans including those from IMF, WB and IDA etc. |
| Keywords: | Public Finance; Taxation; Expenditure; Fiscsl Policy; Deficit Financing; Zakat; Redistribution. |
| JEL: | E62 H2 H3 |
| Date: | 2010–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22998&r=ara |
| By: | Stelios Michalopoulos; Alireza Naghavi; Giovanni Prarolo |
| Abstract: | This research examines the economic origins of Islam and uncovers two empirical regularities. First, Muslim countries, virtual countries and ethnic groups, exhibit highly unequal regional agricultural endowments. Second, Muslim adherence is systematically larger along the pre-Islamic trade routes in the Old World. The theory argues that this particular type of geography (i) determined the economic aspects of the religious doctrine upon which Islam was formed, and (ii) shaped its subsequent economic performance. It suggests that the unequal distribution of land endowments conferred differential gains from trade across regions, fostering predatory behavior from the poorly endowed ones. In such an environment it was mutually beneficial to institute a system of income redistribution. However, a higher propensity to save by the rich would exacerbate wealth inequality rendering redistribution unsustainable, leading to the demise of the Islamic unity. Consequently, income inequality had to remain within limits for Islam to persist. This was instituted via restrictions on physical capital accumulation. Such rules rendered the investments on public goods, through religious endowments, increasingly attractive. As a result, capital accumulation remained low and wealth inequality bounded. Geography and trade shaped the set of economically relevant religious principles of Islam affecting its economic trajectory in the preindustrial world. |
| Keywords: | Religion; Physical Capital; Human Capital; Land Inequality; Wealth Inequality |
| JEL: | O10 O13 O16 O17 O18 F10 Z12 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:cca:wpaper:145&r=ara |
| By: | Azza El-Shinnawy (Microsoft Education, Dubai) |
| Abstract: | In this paper, trends in total factor productivity (TFP) growth in 13 of Egypt's largest and oldest pharmaceutical generics firms are examined. The paper relies on data envelopment analysis (DEA) the non-parametric frontier methodology to obtain the Malmquist productivity index for the sample firms, which account for 50% of Egypt's generics market. The study period ranges from 1993 to 2005. Best-practice firms and laggard firms in the three aspects of efficiency change, technical change and TFP change are identified. Empirical results indicate the best-practice firm in terms of TFP change belongs to the private sector, while the laggard firm belongs to the state-owned public business sector. No differences of significance exist between the performance of private sector and state-owned generics companies. Additionally, state-owned companies which have been subject to partial privatization did not exhibit higher levels of TFP change than those which remained under full state-ownership. Empirical results also indicated that mean TFP change for the sample firms throughout the study period (1.01) exceeded the mean TFP change for all Egyptian industries (0.75), and that there was evident disassociation, or weak correlation at best, between productivity growth/regress and the degree of export orientation. |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:524&r=ara |
| By: | Sreelekha Nair; Marie Percot |
| Abstract: | This paper discusses the case of Indian nurses who take up their profession as part of a family strategy, where planning for education and migration are intrinsic to the whole process. In effect, they migrate in a step-by-step phased manner: first within Indian states, mainly to metropolises, then to countries in the Persian Gulf, and further towards the West. It is not a simple, linear course of migration for them nor is it unique in any extraordinary way: yet their stories offer a terrain that is hitherto unexplored. |
| Keywords: | Indian nurses, family strategy, planning, education, migration, phased manner, Persian Gulf, West, extraordinary, hitherto unexplored |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2521&r=ara |