nep-ara New Economics Papers
on MENA - Middle East and North Africa
Issue of 2019‒12‒23
seven papers chosen by
Paul Makdissi
Université d’Ottawa

  1. Characterising the water-energy-food nexus in Kuwait and the Gulf region By Siderius, Christian; Conway, Declan; Yassine, Mohamed; Murken, Lisa; Lostis, Pierre-Louis
  2. "Wage Differential between Palestinian Non-refugees and Palestinian Refugees in the West Bank and Gaza" By Sameh Hallaq
  3. Oil Price Shocks and Unemployment Rate: New Evidence from the MENA Region By Iman Cheratian; Mohammad Reza Farzanegan; Saleh Goltabar
  4. Financial Stability and Financial Markets: Case of Turkey By Tursoy, Turgut
  5. US Dollar Dynamics and it Impacts on Algeria Imports from the Eurozone By Kamel Malik Bensafta
  6. Towards energy efficiency: case of Morocco By Lahcen El Iysaouy; Najiba El Idrissi; Manuela Tvaronavičienė; Mhammed Lahbabi; Abdelmajid Oumnad
  7. Impact of Terrorist Incidents on Tourism in Africa, the Middle East, and South Asia: A Dynamic Heterogeneous Panel Approache By Ugur Gok; Ikechukwu Nwaka

  1. By: Siderius, Christian; Conway, Declan; Yassine, Mohamed; Murken, Lisa; Lostis, Pierre-Louis
    Abstract: Economic challenges as a result of the recent fluctuations in oil prices have exposed unprecedented risks to Kuwait and the other Gulf Cooperation Council (GCC) states, including securing long-term sustainable access to and use of water and food resources. The strong interlinkages between the availability of water, energy, and food resources have been termed the Water–Energy–Food (WEF) nexus. Here, we characterise the nexus for Kuwait across different spatial scales, reviewing available literature and focussing on empirical data from the most widely used global and regional databases on water, energy and food. While there are certainly issues of water scarcity, trade-offs between sectors at the domestic level are limited. At the international scale, high oil export revenues shield Kuwait from the immediate impacts of higher prices in food imports, but they expose Kuwait to water scarcity and food production risks in other countries. At the global scale, we consider climate change mitigation linkages with Kuwait’s WEF nexus. Whilst there is great uncertainty about future international climate policy and its implications for oil and gas revenues in Kuwait, our analysis illustrates how implementation of policy measures to account for the social costs of carbon could be significant.
    JEL: N0
    Date: 2019–12
  2. By: Sameh Hallaq
    Abstract: This paper measures the wage differential between Palestinian non-refugees and Palestinian refugees in the West Bank and Gaza over the years 1999-2012. First, the main individual and occupational differences between the two groups in the two regions are presented. Then, the wage differential is decomposed into two components: a "human capital effect, explained part" and a "coefficient effect, unexplained part." Second, findings suggest that though the wage gap has always existed and favored non-refugees in the West Bank, it has a more substantial impact among low-skilled workers and those in the private sector. Furthermore, most of this gap is attributed to the unexplained part of the wage decomposition model. In Gaza, the wage gap favored refugee workers. Most of this wage gap among unskilled workers is attributed to the endowment/human capital effect, while for skilled workers most of the wage gap is due to the unexplained part--the "coefficient effect"--after 2006.
    Keywords: West Bank; Gaza Strip; Wage Differential; Refugees
    JEL: J31 J71
    Date: 2019–12
  3. By: Iman Cheratian (Economics Research Group, Academic Center for Education, Culture, and Research (ACECR), Tarbiat Modares University (TMU)); Mohammad Reza Farzanegan (Philipps-Universitaet Marburg); Saleh Goltabar (Economics Research Group, Academic Center for Education, Culture, and Research (ACECR), Tarbiat Modares University (TMU))
    Abstract: We examine the effects of oil price shocks on unemployment rates in the MENA oil-exporting and oil-importing countries over the period 1991-2017. Using the nonlinear autoregressive distributed lag (NARDL) model, the results show that in the short-run, the positive changes of oil prices only exert a positive (increasing) impact on the unemployment rate for oil-exporting countries. However, in the long-run, positive changes in oil prices have a significant increasing effect on the unemployment rate for oil-exporting and oil-importing countries in the MENA region. We also find that the negative changes in oil prices do not show a significant effect on the unemployment rate. Our findings are in line with predictions of the Dutch disease hypothesis.
    Keywords: Oil price shocks, Unemployment rate, MENA region, NARDL
    JEL: Q43 E24
    Date: 2019
  4. By: Tursoy, Turgut
    Abstract: Introduction: The purpose of the paper is to examine what is financial stability in the financial market. This paper is providing the condition of financial instability and connecting the concept with the aggregate economic activities. Case Description: This paper investigates the case of Turkey which was faced by a crisis in the year 2001 and explains the intervention by the government to solve the issues related to the crisis. Discussion and Evaluation: After the necessary amendments are done by the government to solve the devastating effects of crises, it is showing to having the well-functioning financial system is crucial for welfare into the country. Conclusions: All the attempted did by the necessary institutions and governments effectively solved the issues related to the crisis, and as a result, improving and developing the necessary conditions into the financial system is an essential task to having a well-functioning financial system.
    Keywords: Financial Instability, Financial Markets
    JEL: G1 G2
    Date: 2019–11–28
  5. By: Kamel Malik Bensafta (Université de Hassiba Ben Bouali Chlef)
    Abstract: In this paper, we are interested in estimating the exchange-rate pass-through impact of the US dollar on Algerian imports; an impact of particular importance when it comes to imports emanating from the Eurozone. In 2015, half of the Algerian imports from the euro area were denominated in the European currency. In contrast, Algerian foreign exchange earnings emanate exclusively from hydrocarbon exports, and are hence denominated in US dollars. Our estimates show that a depreciation of the US dollar vis-à-vis the euro results in a significant and proportionate increase in Algerian imports from the Eurozone. This impact is greater in the case of imports emanating from Spain, Germany and Belgium.
    Date: 2018
  6. By: Lahcen El Iysaouy (University of Mohammed V); Najiba El Idrissi (USMBA - Université Sidi Mohamed Ben Abdellah); Manuela Tvaronavičienė (Vilnius Gediminas Technical University); Mhammed Lahbabi (USMBA - Université Sidi Mohamed Ben Abdellah); Abdelmajid Oumnad (University of Mohammed V)
    Abstract: A major challenge for humanity in the twenty-first century is to combine energy with respect for the environment. During the Rio Earth Summit (2012) the issue of sustainable development was clearly demonstrated. One of the major battles this century for the planet's survival is to include energy efficiency as an international policy priority in order to achieve a significant decrease in greenhouse gas emissions. In this paper, we have presented the current state and outlook of energy efficiency in the transport, residential and industrial sectors, as well as its policy for each sector in Morocco. New strategies implemented by the government for sustainable development were reviewed and discussed. Through these strategies, the shift to energy efficiency is at the forefront of national policy implications for energy security and a low-carbon economy.
    Keywords: Morocco,ggreenhouse gases,energy consumption,energy efficiency,low-carbon,energy policy
    Date: 2019–09–30
  7. By: Ugur Gok (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 21, 110 00, Prague, Czech Republic); Ikechukwu Nwaka (Department of Economics, Girne American University (GAU), North Cyprus, Turkey)
    Abstract: Africa, the Middle East, and South Asian countries have been attracting the lowest number of tourists in recent decades and consequently, have the lowest share from the tourism industry. In this research paper, we investigated whether the aforementioned regions’ poor performance in the tourism industry is due to growing terrorism in the region. Our results indicate that terrorism plays a deterrent role in the tourist’s decision-making process for traveling to those countries. By using both the cross-sectional augmented distributed lag (CS-DL) and the cross-sectional ARDL (CS-ARDL) estimators, we found that there is a significant negative impact of terrorism on tourism.
    Keywords: tourism, terrorism, CS-ARDL, CS-DL, cross-sectional dependence
    JEL: D74 C33 H56 L83
    Date: 2019–12

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