nep-ara New Economics Papers
on MENA - Middle East and North Africa
Issue of 2021‒09‒27
eleven papers chosen by
Paul Makdissi
Université d’Ottawa

  1. Unemployment Hysteresis in Middle East and North Africa Countries: Panel SUR-based Unit root test with a Fourier function By Awolaja, Oladapo G.; Yaya, OlaOluwa S; Vo, Xuan Vinh; Ogbonna, Ahamuefula; Joseph, Solomon O.
  2. School Integration of Refugee Children: Evidence from the Largest Refugee Group in any Country By Murat Guray Kirdar; Ismet Koc; Meltem Dayıoglu
  3. Towards the Reversal of Poverty and Income Inequality Setbacks Due to COVID-19: The Role of Globalisation and Resource Allocation By Isaac K. Ofori; Mark K. Armah; Emmanuel E. Asmah
  4. Bi-Demographic and Current Account Dynamics using SVAR Model: Evidence from Saudi Arabia By Ghassan, Hassan B.; Alhajhoj, Hassan R.; Balli, Faruk
  5. RoSCAs in Egypt: A Banking Institution or a Commitment Device? By Rabie, Dina
  6. Building the resilience of Turkey’s agricultural sector to droughts By Morvarid Bagherzadeh; Makiko Shigemitsu
  7. Assessing the mechanism of barriers towards green finance and public spending in small and medium enterprises from developed countries By Chien, Fengsheng; Ngo, Quang-Thanh; Hsu, Ching-Chi; Chau, Ka Yin; Iram, Robina
  8. The place of ERP in Moroccan SMEs: an empirical study By Zammar Rachid; Omar Lamrani
  9. Road Capacity, Domestic Trade and Regional Outcomes By A. Kerem Cosar; Banu Demir Pakel; Devaki Ghose; Nathaniel Young
  10. Utility-Scale PV-Battery versus CSP-Thermal Storage in Morocco: Storage and Cost Effect under Penetration Scenarios By Ayat-Allah Bouramdane; Alexis Tantet; Philippe Drobinski
  11. Consumer knowledge and perceptions of Circular Economy in the olive oil sector: A study of Tunisians consumers By Yamna Erraach; W. Slimi; Mechthild Donner; Ivana Radic; Feliu López-I-Gelats; Judit Manuel-I-Martin; Fatima El Hadad; Sandrine Costa; Taoufik Yatribi

  1. By: Awolaja, Oladapo G.; Yaya, OlaOluwa S; Vo, Xuan Vinh; Ogbonna, Ahamuefula; Joseph, Solomon O.
    Abstract: Unemployment hysteresis of the Middle East and North African (MENA) countries is investigated under a battery of unit root testing frameworks in the extant literature, including a recently proposed Panel SUR Dickey-Fuller-like unit root test with Fourier and Exponential Smooth Transition Regression (ESTR) nonlinearities. The Fourier function allows for smooth nonlinear breaks, while the ESTR nonlinearity allows for instantaneous breaks. The two nonlinearity types make the recent approach quite appealing. It has, however, been scarcely applied to empirically test unemployment hysteresis hypothesis. Although we find conflicting stances from ADF, FADF and ADF-SB testing frameworks, evidence of unemployment hysteresis effect in Lebanon is consistent across all three tests. The ADF and FADF tests confirm the hysteresis hypothesis in Kuwait and Lebanon, while FADF-SB rejects the unemployment hysteresis hypothesis across all the 19 MENA countries. The results from the KSS and FKSS unit root testing frameworks consistently affirmed the hysteresis effect in Oman and Turkey, while there are mixed stances for Kuwait and Lebanon. The results from SURADF and SURKSS only support the hysteresis hypothesis in Turkey, while the same is confirmed only for Bahrain under the SURFADF and SURFKSS testing frameworks. Unemployment hysteresis hypothesis is confirmed for 12 (about 63.15% of the total number considered) MENA economies.
    Keywords: Unemployment rate; MENA countries; Fourier function; Seemingly Unrelated Regression; Panel data; Unit root test
    JEL: C22 C23 E24 J64
    Date: 2021–03–02
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:109831&r=
  2. By: Murat Guray Kirdar (Department of Economics, Boğaziçi University); Ismet Koc (Institute of Population Studies, Hacettepe University); Meltem Dayıoglu (Department of Economics, Middle East Technical University)
    Abstract: Although school integration of the children of economic migrants in developed countries is well-studied in the literature, little evidence based on large scale representative data exists on the school integration of refugee children—many of whom live in low- or middle-income countries. This study focuses on Syrian refugee children in Turkey and examines the underlying causes of the native-refugee differences in school enrollment. We also analyze employment and marriage outcomes, as they are potentially jointly determined with schooling. For this purpose, we use the 2018 Turkish Demographic and Health Survey, which includes a representative sample of Syrian refugee households. We find that once a rich set of socioeconomic variables are accounted for, the native-refugee gap in school enrollment drops by half for boys and two-thirds for girls, but the gap persists for both genders. However, once we restrict the sample to refugees who arrive in Turkey at or before age 8 and account for the socioeconomic differences, the native-refugee gap completely vanishes both for boys and girls. In one outcome—in never attending school—the native-refugee gap persists even for children who arrive before age 8. Data for Syrians from the pre-war period suggest that this might be an “ethnic capital” that they bring with them from Syria. Finally, we find that the timing of boys’ school drop-out coincides with their entry into the labor market, whereas girls’ drop-out mostly takes place earlier than their marriage.
    Keywords: refugees; education; school enrollment; integration; child labor; marriage; Turkey.
    JEL: I21 I28 O15
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:koc:wpaper:2116&r=
  3. By: Isaac K. Ofori (University of Insubria, Varese, Italy); Mark K. Armah (University of Cape Coast, Cape Coast, Ghana); Emmanuel E. Asmah (University of Cape Coast, Cape Coast, Ghana)
    Abstract: Policy recommendations for building resilient and all-inclusive societies post COVID-19 pandemic continue to dominate the media and research landscapes. However, rigorous empirical content backing such claims, particularly, on both poverty and income inequality, is hard to find. Motivated by the bleak outlook of the Middle East and North Africa (MENA) region, as driven primarily by the floundering hydrocarbon sector, vulnerable employment, and low foreign direct investment, we analyse the poverty and income inequality effects of globalisation and resource allocation in the region. Using data from the World Bank’s Poverty and Equity Database for the period 1990–2019, we provide estimates robust to several econometric techniques the pooled least square, fixed effect, random effect, and the system generalized method of moments estimators to show that: (1) while economic globalisation reduces both poverty and income inequality, social globalisation matters only for income inequality in MENA; (2) economic globalisation is remarkable in reducing income inequality through resource allocation. Policy recommendations are provided in the light of the geopolitical fragility and rise in social globalisation of the region.
    Keywords: Economic Integration, Financial Deepening, GMM, MENA, Globalisation, Inequality, Poverty
    JEL: F14 F15 F6 I3 O53
    Date: 2021–01
    URL: http://d.repec.org/n?u=RePEc:abh:wpaper:21/043&r=
  4. By: Ghassan, Hassan B.; Alhajhoj, Hassan R.; Balli, Faruk
    Abstract: The study explores the impacts of the bi-demographic structure on the current account and gross domestic product (GDP) growth. Using structural vector autoregressive modeling (SVAR), we track the dynamic impacts on these underlying variables. New insights about the dynamic interrelation between bi-population age dependency rate, current account, and GDP growth have been developed. In the short and medium-term, the reactions of GDP growth to both shocks of native and immigrant working-age populations move unsteadily in opposite directions. However, in the long-run, both effects become moderately positive. Additionally, the positive long-run contribution of immigrant workers to the current account growth largely compensates for the negative contribution of the native population. We find a negative hump-shaped reaction of Saudi Age Dependency Rate to immigration policy shocks during a generation. When the shocks emanate from immigrants’ working age, there is a complex mechanism from the complementarity process to the substitutability process between immigrants and the Saudi workforce. In the short and medium-term, the immigrant workers are more complements than substitutes for native workers.
    Keywords: Native population, Immigrant population, Current account, GDP Growth, Cointegration, SVAR
    JEL: C51 F22 F41 J15 J23
    Date: 2020–03
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:109772&r=
  5. By: Rabie, Dina
    Abstract: Rotating Savings and Credit Associations (RoSCAs) is a widely spread informal financial institution in developing countries. This paper examines how access to formal banking (or lack thereof), impatience and self-control are correlated with individuals' decisions to join RoSCAs. The paper employs an incentivized experiment to elicit impatience and a questionnaire to measure bank access, self-control and RoSCA participation among university employees in Cairo (Egypt). Findings indicate that access to formal banking significantly decreases the likelihood of RoSCA participation. In addition, behavioural attitudes partially (self-control but not impatience) correlates with the RoSCA participation decision. Conditional on RoSCA participation, behavioural attitudes towards self-control and impatience are significant correlates of whether an individual is a saver or a borrow in the informal institution.
    Keywords: RoSCAs,RoSCA rank,informal banking,impatience,self-control
    JEL: C91 D14 O17
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:zbw:ilewps:52&r=
  6. By: Morvarid Bagherzadeh; Makiko Shigemitsu
    Abstract: Turkey is exposed to multiple natural hazard-induced disasters (NHID) and has considerable experience in managing the associated risks. Drought, in particular, has had significant impacts on the country’s agricultural sector, and the frequency of droughts is expected to increase due to climate change. Existing governance and policy frameworks seek to ensure that the agricultural sector is prepared for, and able to respond to, adverse events as they occur. While these mechanisms contribute to improved resilience, further opportunities exist to strengthen policy processes, in particular by increasing farmer and private sector participation.
    Keywords: Agricultural risk management, Climate change, Insurance, Irrigation
    JEL: Q15 Q16 Q18 Q25 Q28 Q54
    Date: 2021–09–27
    URL: http://d.repec.org/n?u=RePEc:oec:agraaa:167-en&r=
  7. By: Chien, Fengsheng; Ngo, Quang-Thanh; Hsu, Ching-Chi; Chau, Ka Yin; Iram, Robina
    Abstract: Due to their different abilities to improve financial growth and improve social development, small and medium enterprises (SMEs) have been referred to as the economy’s backbone. Small- and medium-sized enterprises are crucial for both high- and low-income nations’ financial development. Customers grow more conscious of their purchase choices, preferences, and environmental consequences. The financial opportunities for SMEs in the United Arab Emirates to use green innovation methods to address potential obstacles for increasing green goods, processes, and management are examined in this paper; as a result, it is critical to reduce clean technology adoption constraints in small- and medium-sized businesses. To identify significant hurdles, sub-barriers, and ways to overcome impediments to green innovation in the United Arab Emirates, we apply an integrated decision process. Following a detailed literature analysis and the assistance of twelve experts, six primary obstacles, twenty-five sub-obstacles, and strategies to reduce the barriers were identified. Primary and sub-barriers were assessed using the FAHP. The (FTOPSIS) approach was used to rank the strategies. Five SMEs in the United Arab Emirates are putting the suggested integrated decision model to the test. “Financial investment levels 0.646 to 11 percent growth level,” according to the FAHP, are the most significant hurdles to SMEs adopting green practices. This research demonstrated a considerable beneficial association between SMEs and financial development and funding in the United Arab Emirates. According to this study, using research methodologies to provide green innovation in SMEs is the best strategy to overcome green innovation and adoption hurdles in small and medium firms and increasing their economics.
    Keywords: SMEs; Barriers; Green innovation; Financial; FAHP; Financial development; United Arab Emirates
    JEL: E0
    Date: 2021–06–22
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:109668&r=
  8. By: Zammar Rachid (Laboratory of Applied Economics, Agdal FSJES, Mohammed V University); Omar Lamrani (Laboratory of Applied Economics, Agdal FSJES, Mohammed V University)
    Abstract: ENTERPRISE RESOURCE PLANNING has become a very important tool in the modernization process of small and medium-sized Moroccan companies, especially because of the MOUSSANADA program, which supports them in their modernization process through the implementation of an ENTERPRISE RESOURCE PLANNING tool in order to plan resources, reduce production costs and increase productivity. Indeed, ENTERPRISE RESOURCE PLANNING encompasses several applications and modules in order to be a complete and versatile tool. It is for this reason that we have tried to analyze the place of integrated management software packages in small and medium-sized Moroccan companies through a field study. This study is combined with a deductive reasoning which is translated by the confrontation of the theoretical framework and the formulated hypotheses. After the analysis of the questionnaire, we obtained a sample of 33 small or medium-sized companies meeting the above-mentioned criteria, with a workforce ranging from 10 to 150. The objective of this article is to show the impact of the benefits, risks, applications and modules provided by ERP systems on the willingness of managers to invest in them.
    Abstract: L'Enterprise Resource Planning est devenu un outil très important dans la démarche de la modernisation des petites et moyennes entreprises Marocaines surtout grâce au programme MOUSSANADA qui leur accompagne dans leur processus de modernisation via la mise en place de cet instrument afin de planifier les ressources, réduire les coûts de production et augmenter la productivité. En effet ce dernier englobe plusieurs applications et modules afin d'être un outil complet et polyvalent. C'est pour cette raison que nous avons essayé d'analyser la place qu'occupent les progiciels de gestion intégrés au sein des petites et moyennes entreprises Marocaines à travers une enquête terrain. Cette étude est combinée à un raisonnement déductif qui se traduit par la confrontation du cadre théorique et des hypothèses formulées. Après le dépouillement du questionnaire nous avons obtenu un échantillon de 33 petites et moyennes entreprises avec des effectifs allant de 10 à 150. Le présent article a pour objectif de montrer l'impact des avantages, des risques ainsi que des applications et modules fournis par les progiciels de gestion intégrés sur l'envie des dirigeants d'investir dans ces derniers.
    Date: 2021–03–04
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-03340759&r=
  9. By: A. Kerem Cosar; Banu Demir Pakel; Devaki Ghose; Nathaniel Young
    Abstract: What is the impact on intra-national trade and regional economic outcomes when the quality and lane-capacity of an existing paved road network is expanded significantly? We investigate this question for the case of Turkey, which undertook a large-scale public investment in roads during the 2000s. Using spatially disaggregated data on road upgrades and domestic transactions, we estimate a large positive impact of reduced travel times on trade as well as local manufacturing employment and wages. A quantitative exercise using a workhorse model of spatial equilibrium implies heterogeneous effects across locations, with aggregate real income gains reaching 2-3 percent in the long-run. Reductions in travel times increased local employment-to-population ratio but had no effect on local population. We extend the model by endogenizing the labor supply decision to capture this finding. The model-implied elasticity of employment rates to travel time reductions captures about one-third of the empirical elasticity.
    Keywords: trade, market access, transportation infrastructure
    JEL: F14 R11 R41
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_9310&r=
  10. By: Ayat-Allah Bouramdane (LMD - Laboratoire de Météorologie Dynamique (UMR 8539) - INSU - CNRS - Institut national des sciences de l'Univers - X - École polytechnique - ENPC - École des Ponts ParisTech - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique - Département des Géosciences - ENS Paris - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres); Alexis Tantet (LMD - Laboratoire de Météorologie Dynamique (UMR 8539) - INSU - CNRS - Institut national des sciences de l'Univers - X - École polytechnique - ENPC - École des Ponts ParisTech - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique - Département des Géosciences - ENS Paris - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres); Philippe Drobinski (LMD - Laboratoire de Météorologie Dynamique (UMR 8539) - INSU - CNRS - Institut national des sciences de l'Univers - X - École polytechnique - ENPC - École des Ponts ParisTech - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique - Département des Géosciences - ENS Paris - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres)
    Abstract: In this study, we examine how Battery Storage (BES) and Thermal Storage (TES) combined with solar Photovoltaic (PV) and Concentrated Solar Power (CSP) technologies with an increased storage duration and rental cost together with diversification would influence the Moroccan mix and to what extent the variability (i.e., adequacy risk) can be reduced; this is done using recent (2013) cost data and under various penetration scenarios. To do this, we use MERRA-2 climate reanalysis to simulate hourly demand and capacity factors (CFs) of wind, solar PV and CSP without and with increasing storage capabilities—as defined by the CSP Solar Multiple (SM) and PV Inverter Loading Ratio (ILR). We adjust these time series to observations for the four Moroccan electrical zones over the year 2018. Our objective is to maximize the renewable (RE) penetration and minimize the imbalances between RE production and consumption considering three optimization strategies. We analyze mixes along Pareto fronts using the Mean-Variance Portfolio approach—implemented in the E4CLIM model—in which we add a maximum-cost constraint to take into account the different rental costs of wind, PV and CSP. We propose a method to calculate the rental cost of storage and production technologies taking into account the constraints on storage associated with the increase of SM and ILR in the added PV-BES and CSP-TES modules, keeping the mean solar CFs fixed. We perform some load bands-reduction diagnostics to assess the reliability benefits provided by each RE technology. We find that, at low penetrations, the maximum-cost budget is not reached because a small capacity is needed. The higher the ILR for PV, the larger the share of PV in the mix compared to wind and CSP without storage is removed completely. Between PV-BES and CSP-TES, the latter is preferred as it has larger storage capacity and thus stronger impact in reducing the adequacy risk. As additional BES are installed, more than TES, PV-BES is favored. At high penetrations, optimal mixes are impacted by cost, the more so as CSP (resp., PV) with high SM (resp., ILR) are installed. Wind is preferably installed due to its high mean CF compared to cost, followed by either PV-BES or CSP/CSP-TES. Scenarios without or with medium storage capacity favor CSP/CSP-TES, while high storage duration scenarios are dominated by low-cost PV-BES. However, scenarios ignoring the storage cost and constraints provide more weight to PV-BES whatever the penetration level. We also show that significant reduction of RE variability can only be achieved through geographical diversification. Technological complementarity may only help to reduce the variance when PV and CSP are both installed without or with a small amount of storage. However, the diversification effect is slightly smaller when the SM and ILR are increased and the covariances are reduced as well since mixes become less diversified.
    Keywords: thermal energy storage,photovoltaic,battery energy storage,rental cost,diversification,Morocco,concentrated solar power
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-03344439&r=
  11. By: Yamna Erraach (INAT - Institut National Agronomique de Tunisie); W. Slimi (INAT - Institut National Agronomique de Tunisie); Mechthild Donner (INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Ivana Radic (INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Feliu López-I-Gelats (UVic-UCC - Fundació Universitària Balmes); Judit Manuel-I-Martin (UVic-UCC - Fundació Universitària Balmes); Fatima El Hadad (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sandrine Costa (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Taoufik Yatribi (ENA - Ecole Nationale d'Agriculture de Meknès)
    Keywords: Olive sector,Tunisia,Consumer Knowledge,Consumer perception
    Date: 2021–07–01
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-03346746&r=

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