nep-ara New Economics Papers
on Arab World
Issue of 2011‒10‒09
two papers chosen by
Quentin Wodon
World Bank

  1. What Drives Corruption? Evidence from North African Firms By Clara Delavallade
  2. Export diversification in a transitioning economy : the case of Syria By Lim, Jamus Jerome; Saborowski, Christian

  1. By: Clara Delavallade
    Abstract: This paper empirically analyzes the main microeconomic determinants of two forms of corruption supply, administrative corruption and state capture, by Maghrebi firms. This study is based on a new database of nearly 600 Algerian, Moroccan and Tunisian firms. I show that tax evasion is a major factor in the engagement of firms in administrative corruption. The latter increases with the share of sales hidden by the firm as long as it is below half of total sales, and slightly decreases thereafter. State capture is fostered by a failing enforcement of property and contract rights. Interestingly, less competitive firms appear to engage more in both forms of corruption than the most dynamic ones. After assessing the robustness of my empirical results, I draw a comparison of the factors of corruption in North Africa, Uganda and transition countries.
    Keywords: Supply of Corruption, Administrative Corruption, State Capture, Tax Evasion, Competitiveness, North Africa
    JEL: C2 D73 O17 H32
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:rza:wpaper:244&r=ara
  2. By: Lim, Jamus Jerome; Saborowski, Christian
    Abstract: How does the process of export diversification play out in a transitioning economy, especially in light of government policy aimed at trade liberalization? This paper examines this question by considering a directed policy effort by Syria -- an economy transitioning from both economic centralization and resource dependence -- to liberalize its trade in 2001. In addition to documenting the patterns of diversification at the aggregate level since the implementation of the policy, we also examine factors that are related to diversification at the sectoral level. Our findings suggest that, while Syria has achieved reasonably rapid export diversification, this may to a large extent be the result of structural transformations in the economy, and that further consolidation of diversification gains may require continued policy reform along the lines of strengthening Syria's weak institutional and business environment.
    Keywords: Free Trade,Economic Theory&Research,Trade Policy,Agribusiness&Markets,Achieving Shared Growth
    Date: 2011–09–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5811&r=ara

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