nep-ara New Economics Papers
on MENA - Middle East and North Africa
Issue of 2019‒02‒04
seven papers chosen by
Paul Makdissi
Université d’Ottawa

  1. The Impact of Mass Migration of Syrians on the Turkish Labor Market By Aksu, Ege; Erzan, Refik; Kirdar, Murat G.
  2. Okun’s law, unemployment and informal employment: the impact of labour market policies in Algeria since 1997 By Philippe Adair; Ali Souag
  3. Determinants of real exchange rate misalignment: An empirical analysis for MENA region By Slimani, Slah; Ben Allem, Khawla
  4. Gender, culture and STEM: Counter-intuitive patterns in Arab society By Friedman-Sokuler, Naomi; Justman, Moshe
  5. Economic Integration in the Maghreb; An Untapped Source of Growth By Jean-Francois Dauphin
  6. أثر الاستثمار الأجنبي المباشر على نمو القطاع الصناعي بالجزائر By Benyoub, Latifa; Aicha, Aouar; Kharafi, Khadidja
  7. Türkiye Ekonomisinde Sürükleyici Endüstri Analizi:2002-2012 Karşılaştırması By Alp, Esra; Kök, Recep; Başkol, Murat Ozan

  1. By: Aksu, Ege (CUNY Graduate Center); Erzan, Refik (Bogazici University); Kirdar, Murat G. (Bogazici University)
    Abstract: We estimate the effects of the arrival of 2.5 million Syrian migrants in Turkey by the end of 2015 on the labor market outcomes of natives, using a difference-in-differences IV methodology. We show that relaxing the common-trend assumption of this methodology - unlike recent papers in the same setting - makes a substantial difference in several key outcomes. Despite the massive size of the migrant influx, no adverse effects on the average wages of men or women or on total employment of men are observed. For women, however, total employment falls - which results mainly from the elimination of part-time jobs. While the migrant influx has adverse effects on competing native workers in the informal sector, it has favorable effects on complementary workers in the formal sector. We estimate about one-to-one replacement in employment for native men in the informal sector, whereas both wage employment and wages of men in the formal sector increase. Our findings, including those on the heterogeneity of effects by age and education, are consistent with the implications of the canonical migration model. In addition, increases in prices in the product market and in capital flow to the treatment regions contribute to the rise in labor demand in the formal sector.
    Keywords: labor force and employment, wages, immigrant workers, formal and informal sectors, Syrian refugees, Turkey, difference-in-differences, instrumental variables
    JEL: J21 J31 J61 C26
    Date: 2018–12
  2. By: Philippe Adair; Ali Souag
    Date: 2019
  3. By: Slimani, Slah; Ben Allem, Khawla
    Abstract: The purpose of this paper is to explain the magnitude of the misalignment of the real exchange rate and its determinants for the MENA countries. Misalignment is defined as the deviation of the real exchange rate from its equilibrium level, unlike volatility which is defined as fluctuations that are very frequent but do not persist. Through this study, an attempt is made to broaden the traditional analysis, focusing mainly on the role of the exchange rate regimes on misalignment of the REER. On the same point of view, the roles of the persistence of misalignment, the quality of institutions, financial development and inflation in the misalignment of the real equilibrium exchange rate of the region. The results of the empirical analysis show that the most advantageous exchange rate regime for the MENA countries is the floating regime. Also, the quality of institutions, financial development and inflation are determinants of the shift of the REER from its equilibrium value.
    Keywords: MENA countries, Misalignment, Real exchange rate, GMM, Panel data, Determinants
    JEL: E65 O24
    Date: 2018–12–15
  4. By: Friedman-Sokuler, Naomi; Justman, Moshe
    Abstract: Arab society in Israel offers a counter-example, which calls into question the hypothesis that the male advantage in STEM decreases as gender equality in society increases. Analyzing administrative longitudinal data on students in Hebrew- and Arabic-language schools in Israel, all operating within the same centralized education system, we find that the gender achievement-gap favoring girls in Arabic schools, the ethnic group characterized by less gender equality, is greater than the gender gap favoring girls in Hebrew schools. Moreover, maledominated STEM matriculation electives in Hebrew schools are female-dominated in Arabic schools, controlling for prior achievement in mathematics. We show that these patterns are not dependent on socioeconomic or school characteristics but rather reflect ethnic differences in the gendered effect of prior achievement on subject choice. While in Hebrew-language schools the gender gaps favoring men in physics, computer science and advanced mathematics electives increase in early mathematical achievement, in Arabic-language schools gender gaps favoring men are non-existent and even reversed among top achieving students.
    Keywords: culture,gender gap in mathematics,STEM,Arab society,educational choice
    JEL: I21 J15 J16 J24
    Date: 2019
  5. By: Jean-Francois Dauphin
    Abstract: Individual countries of the Maghreb have achieved substantial progress on trade, but, as a region they remain the least integrated in the world. The share of intraregional trade is less than 5 percent of their total trade, substantially lower than in all other regional trading blocs around the world. Geopolitical considerations and restrictive economic policies have stifled regional integration. Economic policies have been guided by country-level considerations, with little attention to the region, and are not coordinated. Restrictions on trade and capital flows remain substantial and constrain regional integration for the private sector.
    Keywords: North Africa;Economic integration;Economic development;Maghreb; Economic Integration; Economic Development; North Africa
  6. By: Benyoub, Latifa; Aicha, Aouar; Kharafi, Khadidja
    Abstract: The purpose of this study is to measure the impact of Foreign Direct Investment on the Industrial Sector Growth in Algeria, towards this goal we analyze the long term relationship among the following variables: the value added of industry sector is used as a dependent variable, Foreign Direct Investment inflows and Domestic Investment as independent variables, using cointegration technique over the period from 1980 to 2017. Our empirical results suggest that Foreign Direct Investment inflows and Domestic Investment had a positive and significant effect on the industrial sector growth of Algeria in the long run as well as in the short run.
    Keywords: الاستثمار الأجنبي المباشر، القطاع الصناعي، الجزائر ، التكامل المشترك. Foreign Direct Investment, Industrial Sector, Algeria, Cointegration test
    JEL: C22 F21 L6 O1
    Date: 2019
  7. By: Alp, Esra; Kök, Recep; Başkol, Murat Ozan
    Abstract: Interindustry analysis that researches alterations in qualitative and quantitative structures of industrial activity is being used as an analytical tool in the matter of monitoring development performance of economy. The aim of this study is to calculate backward linkages by Leontief approach and forward linkages by Ghosh approach based on 2002 and 2012 input output tables and analyse evolution in key sectors. Linkage findings reflecting the 'feedback' and 'stimulant' power of industries are utilized as indicators for optimization in allocation of resources and taking investment decisions. Findings of the study reveal that "manufacture of chemicals, chemical products", "manufacture of fabricated metal products", "recycling" and "research and "development" industries have lost the property of being key industry in relevant period. However only "basic metals” became as a key industry thereby reducing its import dependency. By the results of this study, it is expected to contribute to policymakers in developing policy.
    Keywords: Input-Output Model, Linkage Effects, Key Sector Analysis
    JEL: C67 L00 L6
    Date: 2017–01–30

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