nep-ara New Economics Papers
on Arab World
Issue of 2011‒11‒01
nine papers chosen by
Quentin Wodon
World Bank

  1. Uncovering the Channels through which FDI affects current account: The Case of Turkey By A. Yasemin Yalta
  2. Food Security in the Middle East and North Africa (MENA) and sub-Saharan Africa: A Comparative Analysis. By Jane, Harrigan
  3. How Do Women Entrepreneurs Perform? Empirical Evidence from Egypt By Fatma El-Hamidi
  4. Skilled Labour market and economic development in the Mediterranean area By Adriana Luciano; Roberto Di Monaco
  5. Understanding the Determinants of Female Labor Force Participation in the Middle East and North Africa Region: The Role of Education and Social Norms in Amman By Nadereh Chamlou; Silvia Muzi; Hanane Ahmed
  6. Regional convergence in Turkey: the role of government in economic environment augmenting activities By Karaman, Fatma; Dogruel, Fatma
  7. Education, Innovation and Labor: Obstacles to Egypt’s Competitiveness? By Malak Reda
  8. Determinants of Graduate Unemployment in Tunisia By Maher Gassab; Hanène Ben Ouada Jamoussi
  9. Transition from High Education to the Labour Market: Unemployment within Graduates from the Gender Prospective In the Palestinian Territory By Saleh Alkafri

  1. By: A. Yasemin Yalta
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:tob:wpaper:1108&r=ara
  2. By: Jane, Harrigan
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:hit:hitcei:2011-5&r=ara
  3. By: Fatma El-Hamidi (University of Pittsburgh)
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:laa:wpaper:23&r=ara
  4. By: Adriana Luciano (University of Turin); Roberto Di Monaco (University of Turin)
    Abstract: Steady growing literature has examined the relationship between human capital and economic development. However, there is no empirical evidence that the increase in education is always related to growth. The purpose of this paper is to explore the links between human capital and growth in Mediterranean countries to put the premises for further research on single countries and on the functioning of the Mediterranean high skill labour market and the relationship with the economic development of the whole area. The First step of our analysis is to measure the increasing stock of human capital in the labour force and the population in a working age over the past twenty years, for the Mediterranean countries (Italy, France, Spain, Greece, Croatia, Slovenia, Turkey, Syria, Israel, Egypt, Libya, Tunisia, Algeria, Morocco). The second step will be to single out the contribution of human capital to the economic development. Data of the World Bank is available to carry out this study. The third step will be to study the allocation of labour across sectors of the economy; and the public and private sector. This allocation will be put in relationship with labour market institutions. Furthermore, to deepen the relation between human capital and growth, the fourth step will be to utilize UNPD’s aggregate indexes to measure gender inequalities (GDI) and the importance of women in society (GEM) in Mediterranean countries, as intervenient variables. In the last step, we will analyse migration flows of skilled people among these countries in order to introduce the topic of brain drain and brain waste in the analysis. In conclusion, the analysis shows that the relationship between the development of tertiary education and economic development is not at all linear. The countries overlooking the Mediterranean not only have differing levels of economic and educational development, but, above all, they have employment markets regulated by different institutions and different social institutions determine the opportunities for access to resources by women and men. Deeper analyses by country which could enrich statistical analysis with information concerning the structures of the economic and non-economic institutions that regulate the development of education and the functioning of the labour market, as well as suitable further investigations into the structure of respective economic systems, are needed to formulate useful hypotheses in order to reach agreements which foster a balanced exchange of persons and knowledge between countries that are increasingly interconnected in economic, social and cultural terms.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:laa:wpaper:42&r=ara
  5. By: Nadereh Chamlou (The World Bank); Silvia Muzi (The World Bank); Hanane Ahmed (The World Bank)
    Abstract: The similarities between the labor market supply of women with a Middle Eastern background living in Europe and those of women living in the Middle East is of particular interest. Indeed, empirical evidence shows that Female Labor Force Participation (FLFP) of immigrants reflects to a large extent the FLFP of country of origin, with women from more conservative societies tending to participate less in the labor market than natives or immigrants from countries with a high FLFP. This impacts the host country’s FLFP at an aggregate level. Therefore, from a European perspective, understanding the determinants of female labor supply in the conservative societies, such as countries from the Middle East and North Africa (MENA) region is of particular interest, considering the high share of this group among immigrants. Hence, this empirical research focuses on the role of education, especially higher education, and social norms in MENA on the choice of women to work outside. The region has achieved substantial progress in educating women, increasingly so at the tertiary level and across disciplines, but its FLFP remains the lowest among all regions. Our paper empirically investigates the impact of education with emphasis on higher education on FLFP and the relationship between social norms and female labor supply in a representative city in MENA, namely Amman, Jordan, as a proxy for MENA. Our analysis shows that higher education (post-secondary/university/post-university) has a positive and significant impact on FLFP, whereas secondary and below do not. In addition, there is a strong negative and statistically significant association between traditional social norms and the participation of women in the labor force. The findings pose the question of whether additional policies and actions are needed to change institutions and attitudes toward women’s work in general, as well as improve the economic opportunities of women who have secondary education which affects the bulk of working age women.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:laa:wpaper:31&r=ara
  6. By: Karaman, Fatma; Dogruel, Fatma
    Abstract: Regional disparities are important concerns for the researchers as well as the policy makers in both developed and developing countries. The government, as a leading actor in regional policies, can create externalities through investments not only in the real sectors, but also in infrastructure and institutions. Investments in education, health and transportation enhance the quality of life and business environment, and trigger the development in those regions. The paper defines this type of government role in a particular region as “economic environment augmenting activities of the government”. The paper focuses on two types of initiatives of the government: regional universities and the existence of an airport. The main findings show that spending impact suppresses knowledge impact in the low income provinces. And, there is a threshold for the regional income level: The demand effect of government initiatives as state university and providing air transport has greater impact in low-income provinces, particularly before 2000.
    Keywords: Regional convergence; role of government; effects of universities; panel-data modeling; Turkey
    JEL: R58 O18 R11
    Date: 2011–10–17
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:34271&r=ara
  7. By: Malak Reda (Egyptian Centre for Economic Studies-ECES)
    Abstract: Using panel data regressions for twenty-five countries, including Egypt, for the period 2005-2011, the current study investigates how labor, education and innovation affect Egypt’s competitiveness and in turn affect real economic growth. Results indicate that labor, education and innovation affect greatly competitiveness and real GDP growth and that investing in those dimensions is key for greater economic growth. Further using Egypt’s specific time series for the period 1980-1999, results indicate the importance of raising both the efficiency and level of expenditure on education; highlight the necessity to raise the innovation capacity of the country and stress upon the importance of youth employment and its positive impact on real GDP growth. Assuming that Egypt is able to improve its education, innovation and labor indicators that underlie the global competitiveness score by five percent, this will in turn lead to greater real GDP growth, estimated at 9.9 percent. The results emphasize the need to improve the quality and efficiency of the educational system; to invest heavily in the creation of employment, especially for the youth, and to invest in improving innovation capacity towards higher output growth and welfare.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:laa:wpaper:18&r=ara
  8. By: Maher Gassab (ESC Tunis, URMA – FSEG Tunis); Hanène Ben Ouada Jamoussi (ESC Tunis, URMA – FSEG Tunis)
    Abstract: According to the report of the Central Bank of Tunisia (2009), the unemployment rate had reached 13.3% in 2009. This rate had steadily increased from 12.5% in 2006. This is one of the major challenges of the Tunisian economy and many countries of the MENA region. Furthermore, with more than 500 000 job seekers, the unemployment rate in Tunisia remains one of the highest in the MENA region. A feature of unemployment in Tunisia is the unemployment of graduates. The unemployment rate for this category of young people has recently grown dramatically from 16.9% in 2006 to 21.9% in 2009. This rate is expected to rise in coming years despite all the arrangements made for young graduates to insert them into the labour market. To understand the determinants of this type of unemployment, the paper is based on the diagnosis of the situation through a synthesis of the key findings of surveys conducted in 2005 and 2007 on the promotion of graduates in 2004. This diagnosis was supported by an econometric model linking the unemployment indicator to the key indicators of qualification. The massification of the higher education and the lack of creation of adequate jobs are the main causes of the exponential rise of the unemployment rate for graduates. This situation has forced many students to continue their studies, thus paradoxically minimizing their chances of being recruited because of their over qualification. With the exception of a few specialties such as medicine, computing, telecommunications and architecture, where opportunities are available, especially abroad, other types of graduates meet more or less difficulty on the labour market. The solutions to overcome this crisis of unemployment are rather difficult, requiring enormous resources over several years. These solutions would affect several areas; such as the higher education, the vocational training, the investment and the regional integration.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:laa:wpaper:16&r=ara
  9. By: Saleh Alkafri (Palestinian Central Bureau of Statistics)
    Abstract: Theories and studies indicate that education is an essential factor to reduce the probability and unemployment duration and increase chances for business continuity and stability in a decent job. Nonetheless, what happens to women in many countries of the Middle East and North Africa is just the opposite, specifically in the Palestinian Territories, where the participation of women in the labour market is very low and significantly high rates of unemployment are witnessed. Results indicate that the more the years of education among women the higher the unemployment rate, unlike men, causing a significant gap between both sexes. Then comes the question repeated in all seminars, workshops and conferences, of why women face low possibilities of getting a job when they decide to enter the labour market, especially those young and highly educated? This is the basic problem that this research study tries to tackle through highlighting and identifying the factors affecting the low potential of graduate women in entering the labour market unlike graduate males despite their achievements in education. We have used recent data of the results of Labour Force Quarterly Survey 1996-2008 (total Quarterly sample size for each year is 7600 households), using high technology in the methodology for rotating the sample and the personnel follow-up for the four quarters during a year and a half which provides a meticulous study of the situation. A survey of graduates in the labour market 2006 was also used, which in turn provides a rich base of indicators that support the search results. It should be noted that the methodology came in twofold, the first, a descriptive analysis of the available data, and the second by using the Transition Probability Matrix and analysis of the Probit Regression model. The results confirm the existence of the problem, and relate the reasons to the limitations that restrict the movement of women to get jobs. Moreover, it shows that the problem of unemployment among graduates is highlighted in specific areas and disciplines that do not match the requirements of the market, as well as the employers’ point of view of occupations and activities that women can exercise. Delays in obtaining work, often lead women out of the labour market which in turn causes their low participation in the workforce. The general trend in the future puts in front of the Palestinian decision-maker extraordinary challenges to provide opportunities for jobs that take into account the geographical distribution and the programming of scientific disciplines offered by universities.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:laa:wpaper:30&r=ara

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