nep-ara New Economics Papers
on MENA - Middle East and North Africa
Issue of 2016‒11‒20
seven papers chosen by
Paul Makdissi
Université d’Ottawa

  1. Corruption, innovation and firm growth: Firm-level evidence from Egypt and Tunisia By Goedhuys, Micheline; Mohnen, Pierre; Taha, Tamer
  2. Morocco’s 2014- 2020 Industrial Strategy and its potential implications for the structural transformation process By Karim El Mokri
  3. Digital witnessing in war journalism: the case of post-Arab Spring conflicts By Lilie Chouliaraki
  4. Reserve Requirements, Liquidity Risk, and Bank Lending Behavior By Koray Alper; Mahir Binici; Selva Demiralp; Hakan Kara; Pınar Ozlu
  5. Informality, Public Employment and Employment Protection in Developing Countries By Fran çois Langot; Shaimaa Yassin
  6. Assessment of Green Jobs in Dubai By Dr. Ulrike Lehr; Helena Walter
  7. Présentation d’une approche innovante de développement durable de chaînes de valeurs agricoles dans le cadre d’un nouveau modèle de gouvernance locale By Anonymous

  1. By: Goedhuys, Micheline (UNU‐MERIT); Mohnen, Pierre (UNU-MERIT, and Maastricht University); Taha, Tamer (UNU-MERIT)
    Abstract: Using recently collected firm-level data from Egypt and Tunisia, this paper explores the effect of institutional obstacles and corruption on the innovative behaviour of firms and their effect on firms' employment growth. We estimate the micro-level interactions between corruption and institutional obstacles and test the hypothesis that corruption 'greases the wheels' of firm performance when bureaucratic procedures are more severe and hampering innovation. Accounting for endogeneity and simultaneity, the paper uses a conditional recursive mixed-process model (CMP). The results show that corruption has a direct negative effect on the likelihood that a firm is an innovator, but a positive effect when interacted with institutional obstacles. This provides support for the hypothesis that corruption serves as a mechanism to bypass the bureaucratic obstacles related to obtaining the necessary business permits and licences for product innovation. These effects also resonate into firm growth, through their effect on product innovation.
    Keywords: Innovation, corruption, employment growth, Egypt, Tunisia
    JEL: L25 D73
    Date: 2016–10–11
  2. By: Karim El Mokri
    Abstract: Morocco is now more than ever threatened by the trap of middle-income economies. On one hand, it is caught between increased competition from low-income countries in low productivity and labor-intensive sectors and, on the other hand, the difficulty of accelerating its pace of structural transformation towards activities with higher value added and higher technological content. International experience shows that few countries have managed to climb to the status of an advanced economy. The structural transformation process may be, in fact, impeded by several factors relating to market failures, a technological gap, a lack of know-how and human capital, inadequate institutional quality, etc. Overcoming these handicaps is often associated with the need to conduct an effective industrial policy, which should encourage private investment and orient it towards the most dynamic and complex sectors. The purpose of this policy brief is not in fact to assess Morocco’s new industrial policy and the feasibility of its stated objectives in terms of added value and job creation, but rather to judge the appropriateness of the choice of sectors targeted by this strategy, by highlighting the positioning of these sectors in the Product Space as well as with regard to the current cognitive and productive capacity of Morocco.
    Date: 2016–10
  3. By: Lilie Chouliaraki
    JEL: L91 L96
    Date: 2015
  4. By: Koray Alper (Central Bank of the Republic of Turkey); Mahir Binici (Central Bank of the Republic of Turkey); Selva Demiralp (Koc University); Hakan Kara (Central Bank of the Republic of Turkey); Pınar Ozlu (Central Bank of the Republic of Turkey)
    Abstract: Although reserve requirements have been used in emerging markets to smooth credit cycles, the exact transmission mechanism remains to be explored. Using bank level data, this study looks inside the black-box to unveil the interaction of reserve requirement policy with bank lending. We identify a new channel that works through a decline in bank liquidity and loan supply due to an increase in reserve requirements. We show that “quantitative tightening” through reserve requirements affect the funding needs and the liquidity position of the banking system. The consequent changes in bank liquidity have a significant impact on the bank lending behavior.
    Keywords: Monetary transmission mechanism; liquidity channel; reserve requirements; Turkey.
    JEL: E44 E51 E52
    Date: 2016–11
  5. By: Fran çois Langot (University of Le Mans (GAINS-TEPP & IRA), Paris School of Economics, CEPREMAP and IZA.); Shaimaa Yassin (University of Neuchâtel (IRENE), University of Paris 1 Panthéon-Sorbonne (CES and Paris School of Economics) and University of Le Mans (GAINS-TEPP).)
    Abstract: This paper proposes an equilibrium matching labor market model for developing countries where the interaction between public, formal and informal sectors is considered. Theoretical analysis shows that labor markets' liberalization reforms can be evicted by shifts in public employment. Since the public sector accounts for a substantial share of employment in developing countries, this approach is crucial to understand their labor market outcomes. Wage offers to public sector employees increase the outside option value of workers during their bargaining processes in the formal and informal sectors. It becomes more profitable for workers to search on-the-job to access more attractive and stable jobs. The public sector therefore acts as an additional tax imposed on private firms. Using workers flows data from Egypt, we show that labor markets' liberalization plays against informal employment by increasing formal jobs' profitability, but is evicted by the increase of public sector wages observed at the same time.
    Keywords: Job search, Informality, Public Sector, Egypt, Unemployment, Wages, Policy Interventions.
    JEL: E24 E26 J60 J64 O17
    Date: 2016–11
  6. By: Dr. Ulrike Lehr (GWS - Institute of Economic Structures Research); Helena Walter (GWS - Institute of Economic Structures Research)
    Abstract: This paper presents an assessment method for measuring green jobs in Dubai. Firstly, we describe the economic structure of Dubai and identify, which part of the economic sectors can be accounted for as green by international standards. Secondly, we describe the labor market in Dubai and assign the green economy’s activities to the respective labor force. Finally we conclude with a comparison with the literature and an outlook on future development.
    Keywords: Green jobs, labor market, green economy
    Date: 2016
  7. By: Anonymous
    Abstract: Les collaborations entre acteurs publics et privés du développement agricole font défaut en Tunisie notamment du fait de la détérioration des relations inévitable dans le contexte de la dictature vécue précédemment. La révolution de 2011 a ouvert la porte au développement de nouveaux systèmes de gouvernance régionale dans le contexte d’une décentralisation constatée comme principal levier du développement des régions intérieures du pays. Le développement de chaînes de valeur agricoles et agroalimentaires dans des territoires défavorisés est un objectif adapté à l’émergence de nouveaux systèmes de décisions nécessitant des collaborations et pouvant aboutir à des actions en faveur d’une amélioration des conditions de vies des populations rurales. Le projet pour la promotion de l’agriculture durable et du développement rural en Tunisie a conçu et réalisé un processus de dialogue multi-acteurs permettant le développement de plateforme agissant pour le développement de chaînes de valeur dans des territoires défavorisés en Tunisie. La mise en oeuvre de ce processus a permis le renforcement des capacités en collaboration des 2 organisations de producteurs, commerçants, transformateurs et structures d’appui publiques privées et de la société civile. Il permet aussi d’améliorer l’efficacité et la pertinence des mesures et actions de développement. Ainsi, l’installation de plateforme de développement des chaînes de valeur locale constitue une base pour le développement durable de l’agriculture.
    Keywords: Agricultural and Food Policy,
    Date: 2016–09

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