nep-ara New Economics Papers
on Arab World
Issue of 2013‒06‒30
twelve papers chosen by
Quentin Wodon
World Bank

  2. A new estimation of the size of informal economy using monetary and full expenditures in a complete demand system. By Armagan Tuna Aktuna Gunes; Christophe Starzec; François Gardes
  3. Road Traffic Accidents in Saudi Arabia: An ADRL Approach and Multivariate Granger Causality By Ageli, Mohammed Moosa
  4. Economic growth and combustible renewables and waste consumption nexus in MENA countries By Ben Jebli, Mehdi; Ben Youssef, Slim
  5. Modelling Nonlinear Behavior of Labor Force Participation Rate by STAR: An Application for Turkey By Cengiz, Sibel; Sahin, Afsin
  6. Combustible renewables and waste consumption, exports and economic growth: Evidence from panel for selected MENA countries By Ben Jebli, Mehdi; Ben Youssef, Slim
  7. Macro-Financial Linkages in Egypt: A Panel Analysis of Economic Shocks and Loan Portfolio Quality By Inessa Love; Rima Turk Ariss
  8. The ‘Knowledge Economy’-finance nexus in SSA and MENA countries By Asongu , Simplice A
  9. Fulfillment of Maqasid al-Shariah via Takaful By Abdul Aziz, Ahmad Faizal; Mohamad, Shaifulfazlee
  10. Shariah Governance: Challenges Ahead By Abdul Aziz, Ahmad Faizal
  11. Economic growth, combustible renewables and waste consumption and emissions in North Africa By Ben Jebli, Mehdi; Ben Youssef, Slim
  12. Climate Change and Economic Growth: An Intertemporal General Equilibrium Analysis for Egypt By Elshennawy, Abeer; Robinson, Sherman; Willenbockel, Dirk

  1. By: Cansu Akpinar-Sposito (Centre de Recherche Magellan - Université Jean Moulin - Lyon III : EA3713)
    Abstract: Abstract: This study is particularly focused on the glass ceiling issues and the main career obstacles for female executives based on the findings of a cross-country comparative study between Turkey and France. Prior to collecting the required data, a review was carried out in both countries, the current available and attitudinal studies related to the concept of the 'glass ceiling'. A comparative descriptive analysis was conducted to show differences in career barriers for women between countries. The field study of this project generated 20 semi-structured interviews with 12 main questions concerning their career background and the glass ceiling syndrome with staff from 12 international companies in both France and Turkey. Interviews lasted approximately for one hour and were conducted in French, Turkish and English. After successively analyzing all the transcripts of the interviews, three ideological approaches have been identified from the field study. The three main topics that were mentioned by the women interviewed in both countries were personal Compromises, Career Encouragers, and Corporate Culture. These findings indicated that there were several similar approaches to helping the career advancement of women in both countries and also different approaches which are unique to each country involved in the study.
    Keywords: Career barriers, glass ceiling, women in management, Turkey, France.
    Date: 2013
  2. By: Armagan Tuna Aktuna Gunes (Centre d'Economie de la Sorbonne - Paris School of Economics); Christophe Starzec (Centre d'Economie de la Sorbonne - Paris School of Economics); François Gardes (Centre d'Economie de la Sorbonne - Paris School of Economics)
    Abstract: We use the demand system approach to estimate the size of informal economy in Turkey following the methodology based on the analysis of the individual consumption behaviour proposed by Pissarides, Weber (1989), Lyssiotou et al. (2004), and Fortin et al. (2009). We extend this method by taking into account both the monetary expenditures and time spent on domestic activities. The necessary information of money and time inputs in consumption on the household's level is obtained by statistical match of Turkish Family Budget and Time Use surveys (2006). As expected, the estimated model size of the informal economy in Turkey using the full (time plus money) expenditure is higher than those obtained by only monetary approach (in average 40.6% and 33.5% of GDP respectively) and also higher than obtained by more conventional macroeconomic methods (for example 35.1% by Schneider in 2005 with DYMIMIC model).
    Keywords: Informal economy, complete demand system, time use full expenditures.
    JEL: D01 D12 E26 C81
    Date: 2013–06
  3. By: Ageli, Mohammed Moosa
    Abstract: The present paper examine the nexus between road traffic accident (RTA) and some relevant variables in Saudi Arabia over the period 1971- 2012, using the autoregressive distributed lag ADRL model (Pesaran and Shin, 1999) for co-integration in Saudi Arabia, with the co-integration test. Results show that the variables are co-integrated in Saudi Arabia, moreover, the overall Granger causality results present that road traffic accidents, population and GDP, road mails, registered vehicles, and the number of driver license are Granger-causes each other in Saudi Arabia. With these findings, we affirm that there is a strong relationship and effect between road traffic accidents and its population, GDP, road mails, registered vehicles, and the number of driver license. The findings suggest that the ECTt-1 coefficients are negative signed and statistically significant in all VECMs, implying that there is bi-directional causality between the variables of interest in the long run.
    Keywords: Road Traffic Accident, Granger Causality, (ADRL) Model, Co-integration Test, Saudi Arabia
    JEL: O11 R4
    Date: 2013–04–24
  4. By: Ben Jebli, Mehdi; Ben Youssef, Slim
    Abstract: This paper is an attempt to investigate the causal relationship between economic growth and combustible renewables and waste consumption for 12 countries of the Middle East and North Africa (MENA) region during the period of 1975-2008 using panel cointegration techniques and panel causality tests. Granger causality test shows that there is evidence of no causality among variables in the short-run, while in the long-run the panel error correction model results reveal bidirectional causality between combustible renewables and waste consumption and economic growth. The results from OLS, FMOLS and DOLS panel estimates suggest that: i) The coefficient of combustible renewables and waste is positive and statistically significant. ii) The impact of economic growth on combustible renewables and waste is positive and statistically significant. In the long-run, a 1% increase in combustible renewables and waste increases real GDP in MENA countries by approximately 0.08%, and a 1% increase in economic growth increase combustible renewables and waste by approximately 0.43%. These results reveal that there is no strong relationship between variables given that the impact of each one on the other is quite small.
    Keywords: Combustible renewables and waste consumption; Economic growth; Panel cointegration.
    JEL: C33 Q43
    Date: 2013–06–22
  5. By: Cengiz, Sibel; Sahin, Afsin
    Abstract: During the economic crisis periods, due to the discouraged worker and added worker effects, we may not gather healthy information from the unemployment rates concerning the labor market. For this reason, it is claimed in the literature that the Labor Force Participation Rate (LFPR) may be a better indicator than the unemployment rate during the economic crises. When the time series data exhibits asymmetry and nonlinearity during the recessions, the LFPR tends to diminish. Following, the unemployment rate may decrease because of the diminishment in LFPR. To add more, it may not reflect the actual aspects of the market. As a result while considering the unemployment rate we should also observe the LFPR. The participation decision of labor in the course of shocks depends on the coherence of the labor market to the fluctuations. On the other hand, during the expansions, the LFPR increases gradually. The behavior and the univariate properties of the LFPR also vary differently considering the gender non-similarities.
    Keywords: Labor Force Participation Rate, Asymmetry, Nonlinear Behaviour, STAR Model.
    JEL: C01 E24 J21
    Date: 2013–03–26
  6. By: Ben Jebli, Mehdi; Ben Youssef, Slim
    Abstract: This paper examines the causal relationship between combustible renewables and waste consumption, exports and economic growth for a panel of eleven Middle East and North Africa (MENA) countries for the period 1975-2008. We use the Granger causality and the vector error correction model (VECM) to investigate both the short-run and the long-run dynamic relationship between these variables. The results from the panel Granger causality test indicate that in the short-run economic growth has a positive and statically significant impact on exports. However, there is no causal link between economic growth and combustible renewables and waste consumption, and between exports and combustible renewables and waste consumption. In the long-run, the results from the panel error correction model indicate that there is evidence of long-run causality from economic growth and exports to combustible renewables and waste consumption and from economic growth and combustible renewables and waste consumption to real exports. The policy implication of this finding is that combustible renewables and waste is not sufficiently used in private or public industrial sectors in emerging economies, and the consumption policy reserved for production encourages households to use fossil fuels or renewable energy.
    Keywords: Combustible renewables and waste; exports; MENA countries; panel cointegration techniques; Granger-causality.
    JEL: C33 F43 Q43
    Date: 2013–06–12
  7. By: Inessa Love (University of Hawaii at Manoa Economic Research Organization); Rima Turk Ariss (Lebanese American University)
    Abstract: This paper investigates macro-financial linkages in Egypt using two complementary methods, assessing the interaction between different macroeconomic aggregates and loan portfolio quality in a multivariate framework as well as through a panel vector autoregressive method that controls for bank-level characteristics. Using a panel of banks over 1993-2010, the authors find that a positive shock to capital inflows and growth in gross domestic product improves banks’ loan portfolio quality, and that the effect is fairly similar in magnitude using the multivariate and panel vector autoregressive frameworks. In contrast, higher lending rates may lead to adverse selection problems and hence to a drop in portfolio quality. The paper also reports that a larger market share of foreign banks in the industry improves loan quality.
    Keywords: Macroeconomic Shocks; Banks; Loan Quality; Panel Vector Autoregression
    JEL: C63 E44 G21 G28
    Date: 2013–06
  8. By: Asongu , Simplice A
    Abstract: Abstract Purpose – This paper assesses dynamics of the knowledge economy (KE)-finance nexus using the four variables identified under the World Bank’s knowledge economy index (KEI) and seven financial intermediary dynamics of depth, efficiency, activity and size. Design/methodology/approach – Principal Component Analysis is used to reduce the dimensions of KE components before dynamic panel GMM estimation techniques are employed to examine the nexuses. Findings – Four main findings are established. (1) Education improves financial depth and financial efficiency but mitigates financial size. (2) But for a thin exception (trade’s incidence on money supply), economic incentives (credit facilities and trade) are not consistently favorable to financial development. (3) ICT improves only financial size and has a negative effect on other financial dynamics. (4) Proxies for innovation (journals and FDI) have a positive effect on financial activity; journals (FDI) have (has) a negative (positive) effect on liquid liabilities and; journals and FDI both have negative incidences on money supply and banking system efficiency respectively. Practical Implications – As a policy implication, the KE-finance nexus is a complex and multidimensional relationship. Hence, blind and blanket policy formulation to achieve positive linkages may not be successful unless policy-making strategy is contingent on the prevailing ‘KE specific component’ trends and dynamics of financial development. Policy makers should improve the economic incentive dimension of KE that overwhelmingly and consistently deters financial development, owing to surplus liquidity issues. Originality/value – As far as we have reviewed, this is the first paper to examine the KE-finance nexus with the plethora of KE dimensions defined by the World Bank’s KEI and all the dynamics identified by the Financial Development and Structure Database (FDSD).
    Keywords: Financial development; Knowledge Economy
    JEL: G21 O10 O34 P00 P48
    Date: 2013–01–02
  9. By: Abdul Aziz, Ahmad Faizal; Mohamad, Shaifulfazlee
    Abstract: Protection is as important as other basic needs as it ensures the continuity of the fulfillment of the needs. The fulfillment from Islamic point of view can be categorised into five major areas as prescribed under the Maqasid al-Shariah. Protection can be achieved via Insurance, but it is not acceptable by Islam because of the element of riba, gharar, and maysir in it. Therefore, Takaful or Islamic Insurance is taken as alternative to achieve the same objective but with a different contract and via Shariah-compliant investment mechanism. This paper tries to connect Takaful and its features as a tool to fulfill the Maqasid al-Shariah.
    Keywords: Islamic Insurance, Takaful, Maqasid al-Shariah, Wealth Protection.
    JEL: G22 I00
    Date: 2013–05
  10. By: Abdul Aziz, Ahmad Faizal
    Abstract: Bank Negara Malaysia (BNM) had previously issued a number of statutory requirements in making the establishment of Shariah Committee (SC) of a bank mandatory via Islamic Banking Act 1983, Banking & Financial Institution Act 1989, Takaful Act 1984 and Central bank of Malaysia (Amendment) Act 2003. The establishment of SC is important as part of the governance of an Islamic Bank in order to assure the stakeholders that the Bank is doing its business in permissible manner as outlined by the Shariah. Despite the structure, there is still skepticism about the system mainly on the capacity and the capability of the SC as reported in previous publications. This paper shall identify challenges faced by the SC that had impaired their capacity and capability in achieving their objectives. Subsequently, this paper shall recommend alternative measures on issues highlighted in assisting the SC and Shariah Auditors in bridging the public expectations. This study confines to issues pertaining to Islamic Banks operating in Malaysia as published in relevant articles and the author’s personal encounter.
    Keywords: Islamic Finance, Shariah Governance, Shariah Committee, Shariah Audit
    JEL: G28
    Date: 2012–05
  11. By: Ben Jebli, Mehdi; Ben Youssef, Slim
    Abstract: This paper examines the causal relationship between economic growth, combustible renewables and waste consumption, and CO2 emissions for a balanced panel of five North Africa countries during the period 1971-2008. The panel cointegration test results indicate that in the short-run there is a unidirectional causality running from real GDP per capita to per capita CO2 emissions. However, there is evidence of no causality between combustible renewables and waste consumption and real GDP and between combustible renewables and waste consumption and CO2 emissions. In the long-run, we find that there is evidence of a unidirectional causality running from CO2 emissions and combustible renewables and waste consumption to real GDP. The results from panel FMOLS and DOLS estimates show that emissions is the most significant variable in explaining economic growth in the region which is followed by the consumption of combustible renewables and waste. In the long-run, increases in combustible renewables and waste consumption and emissions lead to increase economic growth. The finding of this paper is that North Africa region can use combustible renewables and waste as a substitutable energy to the fossil one and avoid the disaster on atmosphere by reducing emissions without impeding economic growth in the long-run.
    Keywords: Combustible renewables and waste consumption; panel cointegration; North Africa.
    JEL: C33 Q43
    Date: 2013–06–11
  12. By: Elshennawy, Abeer; Robinson, Sherman; Willenbockel, Dirk
    Abstract: Due to the high concentration of economic activity along the low-lying coastal zone of the Nile delta and its dependence on Nile river streamflow, Egypt's economy is highly exposed to adverse climate change. Adaptation planning requires a forward-looking assessment of climate change impacts on economic performance at economy-wide and sectoral level and a cost-benefit assessment of conceivable adaptation investments. This study develops a multisectoral intertemporal general equilibrium model with forward-looking agents, population growth and technical progress to analyse the long-run growth prospects of Egypt in a changing climate. Based on a review of existing estimates of climate change impacts on agricultural productivity, labor productivity and the potential losses due to sea-level rise for the country, the model is used to simulate the effects of climate change on aggregate consumption, investment and welfare up to 2050. Available cost estimates for adaptation investments are employed to explore adaptation strategies. On the methodological side, the present study overcomes the limitations of existing recursive-dynamic computable general models for climate change impact analysis by incorporating forward-looking expectations. Moreover, it extends the existing family of discrete-time intertemporal computable general equilibrium models to which our model belongs by incorporating population growth and technical progress. On the empirical side, the model is calibrated to a social accounting matrix that reflects the observed current structure of the Egyptian economy, and the climate change impact and adaptation scenarios are informed by a close review of existing quantitative estimates for the size order of impacts and the costs of adaptation measures. The simulation analysis suggests that in the absence of policy-led adaptation investments, real GDP towards the middle of the century will be nearly 10 percent lower than in a hypothetical baseline without climate change. A combination of adaptation measures, that include coastal protection investments for vulnerable sections along the low-lying Nile delta, support for changes in crop management practices and investments to raise irrigation efficiency, could reduce the GDP loss in 2050 to around 4 percent.
    Keywords: Climate change adaptation, Computable general equilibrium analysis, Dynamic CGE
    JEL: C68 D9 D90 E17 O44 Q54
    Date: 2013–01

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