nep-ara New Economics Papers
on Arab World
Issue of 2011‒04‒23
six papers chosen by
Quentin Wodon
World Bank

  1. The Extent of Trade Mis-Invoicing in Turkey: Did Post-1990 Policies Matter? By Yalta, A. Yasemin; Demir, Ishak
  2. The Turkish Wage Curve: Evidence from the Household Labor Force Survey By Baltagi, Badi H.; Baskaya, Yusuf Soner; Hulagu, Timur
  3. Financing Resources for Egyptian Small and Medium Enterprises By Rola Nabil El Kabbani; Christian Kalhoefer
  4. Empirical analysis of corporate savings in Egypt By Love, Inessa
  5. Assessment of the impacts of oil: Opportunities and challenges for economic development in Sudan By Nour, Samia Satti Osman Mohamed
  6. La décision d'innovation: cas des entreprises Tunisiennes de services By Sdiri , Hanen; Mohamed, Ayadi

  1. By: Yalta, A. Yasemin; Demir, Ishak
    Abstract: We analyze the extent and the direction of trade misinvoicing in the context of the new policy environment that has affected the Turkish economy in the post 1990 period. Utilizing bilateral partner country statistics between Turkey and its major trading partners, we observe persisting export overinvoicing and an oscillating pattern of import misinvoicing at the aggregate level. Country-specific data reveal different patterns. As opposed to the general trend in misinvoicing, exports to China are underinvoiced and imports are overinvoiced. We also analyze how the liberalization policies and the customs union agreement with the European Union countries affect trade misinvoicing. We find that, with trade liberalization policies, import misinvoicing has decreased at the aggregate level. However, contrary to the expectations, customs union agreement did not help decrease the extent of trade misinvoicing in Turkey.
    Keywords: International trade; trade misinvoicing; foreign trade statistics; Turkey.
    JEL: F01 F14 F1
    Date: 2010–04–15
  2. By: Baltagi, Badi H. (Syracuse University); Baskaya, Yusuf Soner (Central Bank of Turkey); Hulagu, Timur (Central Bank of Turkey)
    Abstract: This paper examines the Turkish wage curve using individual data from the Household Labor Force Survey (HLFS) including 26 NUTS-2 regions over the period 2005-2008. When the local unemployment rate is treated as predetermined, there is evidence in favor of the wage curve only for younger and female workers. However, if the lagged unemployment rate is used as an instrument for current unemployment rate, we find an unemployment elasticity of -0.099. We also find a higher elasticity for younger, less educated, low experienced workers than for older, more educated and more experienced workers. Another important finding is that the wages of females in Turkey are significantly more responsive to local unemployment rates than their male counterparts.
    Keywords: wage curve, fixed effects, instrumental variables, two-stage least squares
    JEL: J30 J60
    Date: 2011–04
  3. By: Rola Nabil El Kabbani (Faculty of Management Technology, The German University in Cairo); Christian Kalhoefer (Faculty of Management Technology, The German University in Cairo)
    Abstract: Even though small and medium enterprises (SMEs) represent the majority of the Egyptian firms, their value added is relatively low. According to previous research, SMEs face a financing gap that causes undercapitalization and represents an obstacle that hinders SMEs from growth. This paper analyzes the current situation of SMEs in Egypt and addresses the question whether the financing problem still exists. In addition, we discuss the role of venture capital as a possible source of financing. Based on data which has been gathered using questionnaires, it is investigated whether Egyptian SMEs do know and would accept venture capital financing for their businesses. Our results show that access to finance is still a significant bottleneck for Egyptian SMEs. Venture capital financing could help to close this financing gap.
    Keywords: SME, Financing Gap, Venture Capital
    JEL: G24
    Date: 2011–04
  4. By: Love, Inessa
    Abstract: This paper presents empirical analysis of corporate savings in Egypt using two datasets: a survey of small and medium enterprises and data from accounting statements for the largest publicly traded firms. There are two main findings. First, larger firms invest more (they have more physical saving) and have greater access to finance than smaller firms. Second, despite the financial deepening, the use of credit products has been declining during the past decade. The study reaffirms the importance of improving access to financial services in Egypt and points out the need for more research. In addition, policies aimed at reducing macroeconomic volatility are likely to result in increased investment and growth in Egypt.
    Keywords: Access to Finance,Debt Markets,Economic Theory&Research,Emerging Markets,Investment and Investment Climate
    Date: 2011–04–01
  5. By: Nour, Samia Satti Osman Mohamed (Faculty of Economic and Social Studies, Khartoum University, and UNU-MERIT)
    Abstract: This paper provides an assessment of the impacts of oil and discusses the opportunities and challenges for enhancing economic development in Sudan. One advantage of our analysis in this paper is that we provide a more comprehensive analysis using the most recent secondary data to discuss the positive and negative impacts of oil for enhancing economic development in Sudan. We explain that the various positive impacts of oil and the opportunities for enhancing development in Sudan's economy include the impacts of oil in satisfying domestic consumption and achievement of self sufficiency, increasing government and public revenues, rapid and impressive economic growth as measured by the growth in the GDP and its composition and structure, increasing foreign direct investment (FDI) and increasing the volume of foreign trade as measured by the volume and structure of exports. We find that while oil has recently contributed to the improvement of economic performance in the country, the recent heavy dependence on it, may lead to negative impacts and serious challenges for the Sudan since oil is an exhaustible resource and because of the instability of oil prices in the international market the revenue from oil is uncertain and volatile and may lead to instability of economic growth. Moreover, the increasing dependence on oil leads to increasing debate for and against the incidence of the Dutch Disease in Sudan economy, the lack of diversification and the challenges related to potential north-south conflict and division of the country.
    Keywords: oil economy, oil impacts, economic development, Sudan
    JEL: O10 O11 Q30 Q32 Q40 Q43
    Date: 2011
  6. By: Sdiri , Hanen; Mohamed, Ayadi
    Abstract: It is widely recognized that innovation is the major driver of economic growth and competitiveness. But, some works focus especially on analyzing the determinants and the effects of innovation while distinguishing product innovation to process innovation. This distinction is often regarded as a fundamental assumption but the way in which firms make the decision to innovate remains rarely tested. Based on a sample of 108 Tunisian service firms, the purpose of the paper is to explain the way in which firms make the decision to innovate: simultaneous (one-stage model) or sequential (two-stage model). Given the multiple discrete choices setting, we use a Multinomial Probit model (MNP). We find that the two-stage model has a statistically-significant advantage in predicting the innovation. This result suggests that, in practice, the sequential model illustrate well the innovation making-decision procedures.
    Keywords: Innovation; Prise de décision; Secteur des services.
    JEL: O33 O31 L80
    Date: 2011

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