nep-ara New Economics Papers
on Arab World
Issue of 2013‒07‒20
three papers chosen by
Paul Makdissi
University of Ottawa

  1. Structural Change in MENA Remittance Flows By Naufal, George S; Genc, Ismail H.
  2. A New Boost to Transatlantic Ties: The Transatlantic Trade and Investment Partnership and the EU-Turkey Customs Union By AKDAG, Eray
  3. Wage Inequality in Turkey: 2002-2010 By Bakis, Ozan; Polat, Sezgin

  1. By: Naufal, George S (American University of Sharjah); Genc, Ismail H. (American University of Sharjah)
    Abstract: After independence, the GCC countries relied heavily on foreign workers from fellow Arab countries. Thus, remittances flowed from GCC to other countries in MENA. In the 1980s-1990s labor source switched to South Asia; so did the flow of remittances. This paper examines the consequences of the shift in the source of labor by econometrically testing the existence of structural breaks in the flow of remittances in the MENA region. The change in the direction of remittance flows deprived several MENA labor exporters of large sums of foreign exchange, adding significant economic, social and political hardships on non-GCC MENA countries.
    Keywords: migration, remittances, unit roots, structural break, Gulf Cooperation Council (GCC), Middle East and North Africa (MENA)
    JEL: F16 F22 F24 C22
    Date: 2013–07
  2. By: AKDAG, Eray
    Abstract: The world is going through strikingly fast and comprehensive transformation. The harmonization of the bilateral or multilateral regulations and standards all over the world will make market penetrations much easier, or harder. This is also a critical turn for the overall Turkish economic and political atmosphere, which will likely create intriguing influences and spillover effects for the Middle East and North Africa region, at least.
    Keywords: Turkey, EU, Transatlantic Relations, Trade, Investment, Customs Union, T-TIP, TTIP, TPP, Euro-Mediterranean Partnership, Asean, B20, WTO
    JEL: F13 F15 F19
    Date: 2013–06–03
  3. By: Bakis, Ozan (Galatasaray University Economic Research Center); Polat, Sezgin (Galatasaray University Economic Research Center)
    Abstract: This paper studies the evolution of wage inequality over the last decade in Turkey using household labor force survey between 2002 and 2010. During the period between 2002 and 2004, the relative supply of more educated workers to less educated workers stayed almost constant while their relative wages have decreased in the benefit of less educated workers. However, in the second period between 2004 and 2010 the relative supply of more educated workers to less educated workers had risen while their relative wages remained constant or kept increasing in the benefit of more educated workers. Both of these developments calls for factors other than those implied by a simple supply-demand model such as skill-biased technical change or minimum wage changes. The decomposition of wage inequality reveals that price(wage) eect is dominant over the composition particularly in the period between 2002 and 2004. Our results show that the real minimum wage hike in 2004 corresponds to a major institutional change which proves to be welfare increasing in terms of wage inequality. The upper-tail (90/50) wage inequality decreased between 2002 and 2004 and stayed constant thereafter. The lower-tail (50/10) wage inequality decreased smoothly between 2002 and 2010. Our findings provide another evidence to the institutional view.
    Keywords: Wage inequality; Wage structure; Labor Demand; Decomposition; Turkey
    JEL: J23 J31
    Date: 2013–07–16

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