nep-ara New Economics Papers
on Arab World
Issue of 2011‒05‒30
ten papers chosen by
Quentin Wodon
World Bank

  1. The engine of sustainable rural development: Embeddedness of entrepreneurs in rural Turkey By Akgun, A.A.; Baycan Levent, T.; Nijkamp, P.
  2. Business dynamics as the source of counterurbanisation: An empirical analysis of Turkey By Gulumser, A.A.; Baycan, T.; Nijkamp, P.
  3. Demographic pressure, excess labour supply and public-private sector employment in Egypt - Modelling labour supply to analyse the response of unemployment, public finances and welfare By Peeters, Marga
  5. The effects of terrorist activities on foreign direct investment: nonlinear Evidence By Omay, Tolga; Takay Araz, Bahar; Ilalan, Deniz
  6. The Revolution in Tunisia: Economic Challenges and Prospects By AfDB
  7. Nonparametric approach for measuring the productivity change and assessing the water use efficiency in the irrigated areas of Tunisia By Fraj Chemak
  8. Creative capacity for sustainable development: A comparative analysis of European and Turkish rural regions By Akgun, A.A.; Baycan, T.; Nijkamp, P.
  9. The review of financial repression policies and banking system in Iran By Dehghan Nejad, Omid
  10. Reforming Trade in Services and Negotiation Processes in Morocco By Adil Diani

  1. By: Akgun, A.A.; Baycan Levent, T.; Nijkamp, P.
    Date: 2011
  2. By: Gulumser, A.A.; Baycan, T.; Nijkamp, P.
    Date: 2011
  3. By: Peeters, Marga
    Abstract: The demographic structure of Egypt has the form of a pyramid, indicating that labour supply will grow at a relatively high rate for many years to come. Unless emigration flows will rise, Egypt needs to create jobs at a much higher pace than most other countries around the globe to absorb the new entrants at the domestic labour market. Adding to this is the currently high share of 30-40% of the Egyptian employees working in the rather inefficient public sector. In order to quantify future developments at the labour market, this paper presents a labour supply model to analyze the impact of the ongoing demographic supply shocks on unemployment, public finances and welfare in Egypt. The findings indicate that the demographic labour supply will increase unemployment in the short term as the Egyptian labour market will not be able to absorb the demographic labour supply, unless the Egyptian economy grows steadily at least at 5% for many years in a row. In the long term, the employment dividend can be reaped by productivity growth increases if the labour market starts functioning. The findings also point out that, for growth to accelerate rapidly, job creation should occur in the private and not in the public sector. The large public sector has been driving up government expenditures disproportionably, not only because of the existence of the high number of people employed in the public sector but also because of excessive public wage increases.
    Keywords: Demographics; labour supply; employment; greening; public sector employment; public finance
    JEL: C32 J21 J22 J11 J23
    Date: 2011–05–25
  4. By: Elena Meschi (CEE, Institute of Education, University of London); Erol Taymaz (Department of Economics, Middle East Technical University, Ankara); Marco Vivarelli (DISES, Università Cattolica del Sacro Cuore - Piacenza)
    Abstract: In this paper we report evidence on the relationship between trade openness, technology adoption and the relative demand for skilled labour in the Turkish manufacturing sector, using firm level data over the period 1980-2001. In a dynamic panel data setting, using a unique database comprising data from 17,462 firms, we estimate an augmented cost share equation whereby the wage bill share of skilled workers in a given firm is related to international exposure and technology adoption. Both at the sectoral and firm level, it emerged that R&D expenditures are positive and significantly related to skill upgrading. This result supports the skill biased technological change argument in the case of a middle-income country such as Turkey. Moreover, the sectoral analysis revealed that increasing export towards more industrialised countries (mainly the E.U.) tends to shift the production toward less skill-intensive activities. While this result is consistent with the HOSS theorem, on the other hand import penetration from more developed countries turns out to facilitate the adoption of new technologies embodied in capital and intermediate goods, thus shifting the production toward more skill-intensive technologies. This result is confirmed by the firm level analysis that finds a positive impact of technological transfer from abroad, foreign ownership and export on the demand for skills, highlighting the role of increasing globalisation in fostering skill upgrading within firms. Our microdata also allowed us to investigate the direct impact of import flows in shaping the relative demand for skills. The results showed that those firms belonging to the sectors that most raised their inputs from more developed countries also experienced a higher increase in their labour cost share of skilled workers. This finding is a further support to the hypothesis that imports from industrialised countries imply a transfer of new technologies, in turn leading to a higher demand for skilled labour.
    Keywords: globalization, technology transfer, skills, panel data, GMM-SYS
    JEL: F16 O15 O33
    Date: 2010–06
  5. By: Omay, Tolga; Takay Araz, Bahar; Ilalan, Deniz
    Abstract: In this study, we examine the relationship between foreign direct investment and terrorist incidents that took place in Turkey for the period from 1991:12 to 2003:12. This research contributes to the literature by checking for a possible non-linear relationship between terrorism and foreign direct investment. The data used to measure the intensity of terrorism were collected from the newspapers of Turkey, and therefore are limited to the direct signals given to the market. Empirical evidence from both linear and non-linear models confirms that terrorism has a large significant negative impact on foreign direct investment. With respect to the nonlinear model, the impact of terrorism on the foreign direct investment is more severe during periods of high terrorism when the intensity of terrorism passes the threshold level 3.725.
    Keywords: Terror; FDI, Smoot Transition Model
    JEL: C22 F21 J18
    Date: 2011–04–09
  6. By: AfDB
    Date: 2011–05–17
  7. By: Fraj Chemak (Rural Economic Laboratory , National Institute for Agricultural Research of Tunisia)
    Abstract: In order to cope with the water scarcity, Tunisia has to manage efficiently the demand of the economic and social sectors mainly that of the agricultural irrigated activities. Within this context, this investigation aims to analyze the technical efficiency, the water use efficiency and the dynamic of the productivity of the irrigated areas in the Sidi Bouzid region. Farm surveys have been carried out during 2003 and 2007 harvesting years and technology performance has been assessed using Data Envelopment Analysis approach. Malmquist index has been also computed in order to characterize the productivity change. Empirical findings showed that the technical efficiency of the farms has increased by 19% during this period leading to an improvement of the water use efficiency up to 24%. Both, the technical efficiency change as well as the technical change reveal a positive impact on the productivity change. However, in 2007, the water use efficiency was only 79%. Therefore, farmers have to improve further their irrigated practices in order to save more water.
    Keywords: Irrigated Area, Technical Efficiency, Water Use Efficiency, Productivity Change, Data Envelopment Analysis
    JEL: C14 Q12 Q25
    Date: 2011
  8. By: Akgun, A.A.; Baycan, T.; Nijkamp, P.
    Date: 2011
  9. By: Dehghan Nejad, Omid
    Abstract: The methods of determining the banking interest rate are the main issues in the Iranian economy, this note provides the analysis of banking interest rate and the ways of providing and allocating financial resources in Iran and also, discusses why the financial repression policies in the monetary and banking system do not allow the Iranian economy to growth in its full capacity.
    Keywords: Banking Interest Rate; Financial Repression; Monetary and Banking System; Financial Resources
    JEL: E5
    Date: 2011–04–26
  10. By: Adil Diani (LAMETA - Laboratoire Montpellierain d'économie théorique et appliquée - CNRS : UMR5474 - INRA : UR1135 - CIHEAM - Université Montpellier I - Montpellier SupAgro)
    Abstract: Arguments in favor of liberalizing the market for services are becoming increasingly widespread. These arguments particularly apply to financial services, telecommunications, and transportation, which are key sectors that significantly contribute to a nation's economic development. However, the challenges of liberalizing the market for services to foreign competition are evident. Furthermore, this liberalization entails a broad and complex set of policies, regulatory instruments, institutions and constituencies, domestically and in the foreign arena, in the public and the private sector. Experience has shown that considerable care must be given to the assessment of the nature, pace and sequencing of regulatory reform and liberalization in order to meaningfully enhance a nation's economic growth and development. Morocco has signed, ratified, and implemented several Free Trade Agreements (FTAs) and is engaged in discussions with other partners. Issues that concern the market of services are gaining in importance in Morocco's foreign trade policy. Moreover, Morocco has continued to reform its sectoral policies, making notable progress in services sector performances in a bid to diversify its economy. This paper tries to outline some features that concern the trade in services policies and reforms in Morocco and its negotiation process adopted by enforcing bilateral, regional and multilateral agreements.
    Keywords: Morocco; Trade in Service; Trade Policy; Reform, Liberilization, Regulatory impacts.
    Date: 2011–01–21

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