nep-ara New Economics Papers
on MENA - Middle East and North Africa
Issue of 2022‒05‒23
seventeen papers chosen by
Paul Makdissi
Université d’Ottawa

  1. Does Religious Diversity Improve Trust and Performance? Evidence from Lebanon By Canaan, Serena; Deeb, Antoine; Mouganie, Pierre
  2. Forsa pilot program and evaluation plan By El Shabrawy, Atef; Gilligan, Daniel O.; Kurdi, Sikandra; Palloni, Giordano; Yassa, Basma
  3. How Economic, Political and Institutional Factors Influence the Choice of Exchange Rate Regimes? New Evidence from Selected Countries of the MENA Region By Najia Maraoui; Thouraya Hadj Amor; Islem Khefacha; Christophe Rault
  4. Improving social protection for migrants, refugees and asylum seekers in Egypt: An overview of international practices By Marina Andrade; Lucas Sato; Maya Hammad
  5. Financial Indicators, Stock Prices and Returns: Evidence from Banks Listed on the Stock Exchange of an Emerging Market (CSE) By Jihane Aayale; Meriem Seffar; James Koutene
  6. The state of social insurance for agricultural workers in the Near East and North Africa and challenges for expansion By Lucas Sato
  7. The Colonial Legacy of Education: Evidence from of Tunisia By Mhamed Ben Salah; Cédric Chambru; Maleke Fourati
  8. The state of social insurance for agricultural workers in the Near East and North Africa and challenges for expansion By Lucas Sato
  9. Practitioner Note 1: Inclusive targeting, identification and registration By Maya Hammad
  10. What Will It Take for Jordan to Grow? By Tim O'Brien; Thảo-Nguyên Bùi; Ermal Frasheri; Fernando Garcia; Farah Hani; Eric S. M. Protzer; Ricardo Villasmil; Ricardo Hausmann
  11. Prioritizing development policy research in Sudan: An innovative approach to guide IFPRI’s Sudan Strategy Support Program By Kirui, Oliver K.; Siddig, Khalid; Breisinger, Clemens; Dorosh, Paul A.; Kassim, Yumna
  12. Morocco’s new Social Registry: implementation and challenges By Larabi Jaïdi; João Pedro Dytz
  13. An assessment of Sudan’s wheat value chains: Exploring key bottlenecks and challenges By Abdelaziz, Fatma; William, Amy; Abay, Kibrom A.; Siddig, Khalid
  14. Kuwait: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Kuwait By International Monetary Fund
  15. Infrastructure under pressure: water management and state-making in Southern Iraq By Mason, Michael
  16. Les réformes en cours des systèmes de protection sociale au Maroc et en Tunisie dans le contexte de l’impact de la COVID-19 By João Pedro Dytz
  17. Forsa pilot program and evaluation plan [in Arabic] By El Shabrawy, Atef; Gilligan, Daniel O.; Kurdi, Sikandra; Palloni, Giordano; Yassa, Basma

  1. By: Canaan, Serena (Simon Fraser University); Deeb, Antoine (University of California, Santa Barbara); Mouganie, Pierre (Simon Fraser University)
    Abstract: Religious divisions have long played a primary role in major conflicts throughout much of the world. Intergroup contact may increase trust between members of different religions. However, evidence on how inter-religious contact affects individuals' behavior towards one another is scarce. We examine this question in the setting of a four-year university in Lebanon, a country with a long history of deep divisions and armed conflicts between religious groups. To identify causal effects, we exploit the university's random assignment of first-year students to peer groups. We proxy students' religious backgrounds by whether they attended secular, Christian or Islamic high schools—the last of which have the most religiously homogeneous student body. Results indicate that for students from Islamic high schools, exposure to peers from different religious backgrounds decreases their enrollment in courses taught by instructors with distinctively Muslim names, suggesting that contact improves trust towards members of other religions. Moreover, we show that students from Islamic schools experience improvements in GPA when interacting with those from other groups, while exposure to Islamic students reduces secular students' academic performance.
    Keywords: diversity, religious schools, intergroup contact
    JEL: I23 J15
    Date: 2022–04
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp15206&r=
  2. By: El Shabrawy, Atef; Gilligan, Daniel O.; Kurdi, Sikandra; Palloni, Giordano; Yassa, Basma
    Abstract: Forsa, which means “Opportunity†in Arabic, is a new economic inclusion program of the government of the Arab Republic of Egypt. Implemented by the Ministry of Social Solidarity, the program aims to graduate beneficiaries of the national cash transfer program, the Takaful & Karama Program (TKP), from being dependent on transfers from TKP to economic self-reliance by enabling them to engage in wage employment or sustainable economic enterprises. The most recent World Bank Economic Inclusion report (Andrews et al. 2021) highlights a recent increase globally in such graduation or economic inclusion programs, which now reach around 92 million beneficiaries from 20 million households across more than 75 countries. This rapid growth is raising demand for evidence on best practices in graduation program implementation. Egypt’s experience with Forsa can contribute to such guidance.
    Keywords: EGYPT, ARAB COUNTRIES, MIDDLE EAST, NORTH AFRICA, AFRICA, economic integration, economics, programmes, models, assets, remuneration, randomized controlled trials
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:fpr:menawp:38&r=
  3. By: Najia Maraoui; Thouraya Hadj Amor; Islem Khefacha; Christophe Rault
    Abstract: In this paper, we investigate how economic, political and institutional factors affect the choice of exchange rate regimes, using data on eight MENA (Middle East and North Africa) countries over the 1984-2016 period. Specifically, we run random-effects ordered probit regressions of the likelihood of exchange rate regimes on potential determinants of exchange rate regimes. Three important findings emerge from the analysis. i) Political and institutional factors play an important role in determining the exchange rate regime in MENA countries: a democratic political regime and a low level of corruption increases the probability to opt for a fixed regime. While, strong governments, political stability such as less internal conflicts and more government stability, more law and order enforcement and left-wing Government decreases the probability to opt for a fixed regime. ii) Bureaucracy, independent central banks, elections, terms of trade as well as the monetary independence have no effect on the choice of exchange rate regimes. iii) Financial development is not a robust determinant of the choice of exchange rate regimes. Our results still hold when considering alternative specifications and have important implications for policy makers in MENA countries.
    Keywords: exchange rate regimes, country risk, political and institutional factors, panel data, ordered probit regression, MENA
    JEL: C23 F33 F55 H80
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_9709&r=
  4. By: Marina Andrade (IPC-IG); Lucas Sato (IPC-IG); Maya Hammad (IPC-IG)
    Keywords: social protection; migration; governance; Egypt
    Date: 2021–04
    URL: http://d.repec.org/n?u=RePEc:ipc:opager:467&r=
  5. By: Jihane Aayale (ISCAE - Institut Supérieur de Commerce et d'Administration des Entreprises); Meriem Seffar (GRM - Groupe de Recherche en Management - EA 4711 - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - UCA - Université Côte d'Azur); James Koutene (ISCAE - Institut Supérieur de Commerce et d'Administration des Entreprises)
    Abstract: The Moroccan banking sector has undergone major developments following the structural reforms undertaken and which have enabled it to comply with international standards. The implementation of internal control, compliance and risk management systems has significantly improved its profitability. Indeed, Moroccan banks are subject to restrictive regulations and close supervision by the Moroccan Central Bank, Bank Al-Maghrib, to monitor and regulate their growth and exposure to the various risks inherent to their activities, including credit, liquidity, market and operational risks. Among the banks in the sector, six are listed on the Casablanca Stock Exchange, including market-leading banks such as Attijari Wafa bank, Bank of Africa and Banque Centrale Populaire. On the other hand, the Moroccan stock market attracts several local and foreign investors who would be interested in whether the price of shares and their evolution can be predicted by banking and financial ratios. The main objective of this study is to analyze the relationship between share prices and returns of listed banks and indicators of solvency, liquidity, asset quality and profitability. This article runs a multiple linear regression in a panel data analysis using the financial data of commercial banks listed on the Casablanca Stock Exchange from 2011 to 2020. In an efficient financial market, stock prices and their fluctuations should reflect the profitability of banks, alongside with their liquidity, and their solvency, which is a guarantee of the resilience of the banking during financial and economic crises. The results show that stock prices are not impacted by the level of liquidity, asset quality and profitability indicators, raising a much-debated question about the efficiency of the Moroccan stock market. On the other hand, other tests show that the level of profitability of banks, measured by ROA, is linked to the above-mentioned indicators.
    Keywords: Emerging Market,Asset quality,Profitability,Liquidity,Solvency,Stock Market Efficiency,Banks,Share Prices,Stock Returns
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-03633358&r=
  6. By: Lucas Sato (IPC-IG)
    Keywords: social protection; social insurance; rural development; agricultural workers; Near East and North Africa
    Date: 2021–03
    URL: http://d.repec.org/n?u=RePEc:ipc:wpaper:189&r=
  7. By: Mhamed Ben Salah (IHEID, Graduate Institute of International and Development Studies, Geneva); Cédric Chambru (University of Zurich); Maleke Fourati (Mediterranean School of Business, South Mediterranean University)
    Abstract: We study the effect of exposure to colonial public primary education on contemporary education outcomes in Tunisia. We assemble a new data set on the location of schools with the number of pupils by origin, along with population data during the French protectorate (1881-1956). We match those with contemporary data on education at both district and individual level. We find that the exposure of local population to colonial public primary education has a long-lasting effect on educational outcomes, even when controlling for colonial investments in education. A one per cent increase in Tunisian enrolment rate in 1931 is associated with a 1.69 percentage points increase in literacy rate in 2014. Our results are driven by older generations, namely individuals who attended primary schools before the 1989/91 education reform. We suggest that the efforts undertaken by the Tunisian government after independence to promote schooling finally paid off after 40 years and overturned the effects of history.
    Keywords: Colonial investment; Primary education; Tunisia
    JEL: D10 N37 N47
    Date: 2022–05–16
    URL: http://d.repec.org/n?u=RePEc:gii:giihei:heidwp13-2022&r=
  8. By: Lucas Sato (IPC-IG)
    Keywords: social protection; social insurance; rural development; agricultural workers; Near East and North Africa
    Date: 2021–03
    URL: http://d.repec.org/n?u=RePEc:ipc:opager:466&r=
  9. By: Maya Hammad (IPC-IG)
    Keywords: disaster risk management; COVID-19; social protection; MENA
    Date: 2022–04
    URL: http://d.repec.org/n?u=RePEc:ipc:cstudy:67&r=
  10. By: Tim O'Brien (Center for International Development at Harvard University); Thảo-Nguyên Bùi; Ermal Frasheri (Center for International Development at Harvard University); Fernando Garcia; Farah Hani (Center for International Development at Harvard University); Eric S. M. Protzer (Center for Global Development); Ricardo Villasmil; Ricardo Hausmann (Center for International Development at Harvard University)
    Abstract: This report aims to answer the critical but difficult question: "What will it take for Jordan to grow?" Though Jordan has numerous active growth and reform strategies in place, they do not clearly answer this fundamental question. The Jordanian economy has experienced more than a decade of slow growth. Per capita income today is lower than it was prior to the Global Financial Crisis as Jordan has experienced a refugee-driven population increase. Jordan’s comparative advantages have narrowed over time as external shocks and responses to these shocks have changed the productive structure of Jordan’s economy. This was a problem well before the country faced the COVID-19 pandemic. The Jordanian economy has lost productivity, market access, and, critically, the ability to afford high levels of imports as a share of GDP. Significant efforts toward fiscal consolidation have further constrained aggregate demand, which has slowed non-tradable activity and the ability of the economy to create jobs. Labor market outcomes have worsened over time and are especially bad for women and youth. Looking ahead, this report identifies clear and significant opportunities for Jordan to strengthen new engines of export growth that would enable better overall job creation and resilience, even amidst the continued unpredictability of the pandemic. This report argues that there is need for a paradigm shift in Jordan’s growth strategy to focus more direct attention and resources on activating “agents of change” to accelerate the emergence of key growth opportunities, and that there are novel roles that donor countries can play in support of this.
    Keywords: COVID-19, Growth Diagnostics, Trade, FDI, Green Growth, Inclusive Growth, Jordan, Telework, Structural Transformation
    Date: 2022–03
    URL: http://d.repec.org/n?u=RePEc:cid:wpfacu:411&r=
  11. By: Kirui, Oliver K.; Siddig, Khalid; Breisinger, Clemens; Dorosh, Paul A.; Kassim, Yumna
    Abstract: This paper presents an innovative approach to prioritizing development policy research in Sudan with the specific objective of informing the research agenda of the Sudan Strategy Support Program (Sudan SSP) of the International Food Policy Research Institute (IFPRI). The key steps in this process were: A review of relevant priority setting methods and existing government strategies, Pre-selection of research themes, Selection of national and international experts, Design and conduct priority setting workshop; and Priority matrix construction and paper writing. The paper suggests key research priorities for Sudan, which are both highly relevant to Sudan’s current and future development policy agenda and consistent with IFPRI’s own comparative advantage and strategy. It identifies research areas and topics under five main themes, namely: 1. Agricultural production, 2. Markets and trade, 3. Livelihoods and nutrition, 4. Development strategy and investment planning, and 5. Increasing resilience of farming under growing climate challenges. Tackling the priority research tasks identified in this paper, for these five themes, is expected to help reduce poverty and improve food and nutrition security in Sudan. However, strengthening the links between policy research and decision-making will be crucial to ensure that evidence-based solutions are relevant and have a positive impact on people’s lives.
    Keywords: REPUBLIC OF THE SUDAN, EAST AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, development policies, research, workshops, agricultural production, markets, trade, livelihoods, nutrition, investment, resilience
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:fpr:ssspwp:5&r=
  12. By: Larabi Jaïdi (IPC-IG); João Pedro Dytz (IPC-IG)
    Keywords: Morocco; social protection; social registry; targeting
    Date: 2021–04
    URL: http://d.repec.org/n?u=RePEc:ipc:opager:468&r=
  13. By: Abdelaziz, Fatma; William, Amy; Abay, Kibrom A.; Siddig, Khalid
    Abstract: Wheat is a strategic and political good in Sudan and has played a central role in the country’s economy during successive regimes. Disruptions in Sudan’s wheat value chain usually leads to shortages of wheat bread, price spikes, and political unrest. With the objective of ensuring sufficient grain supplies for domestic consumption, Sudan’s domestic and imported wheat sectors have been subject to several government interventions over the last decades. Most interventions have focused on and aimed to (i) stimulate domestic production, (ii) ensure a reliable flow of wheat imports to compensate for low domestic wheat production, and (iii) monitor wheat flour and bread distribution processes to limit leakage and wastage. Sudan has two distinct wheat value chains: one for imported wheat and one for domestic wheat. The imported wheat value chain involves three major actors: milling companies, wheat flour agents, and bakeries. The domestic (locally produced) wheat value chain involves four main actors: wheat producers, wheat grain wholesalers, wheat grain retailers, and consumers. To understand the landscape of the wheat sector in Sudan, this report relies on rapid assessment surveys of the main wheat value chain actors. The aim is to closely identify different value chain actors’ distinct roles of the and to explore their linkages. The report evaluates and identifies key bottlenecks that likely cause wheat and bread supply disruptions while also shedding light on untapped opportunities and possible policy options to improve the functioning of Sudan’s wheat sector. We document wheat value chain actors’ policy preferences, which vary depending on whether actors are engaged in the domestic or the imported value chain. The report highlights the differential impact of COVID-19 and related mobility restrictions on wheat value chain members. For example, while wheat production remains mostly unaffected by the outbreak of the COVID-19 pandemic, the marketing, trade, and distribution of wheat and wheat flour has been adversely affected by it.
    Keywords: REPUBLIC OF THE SUDAN, EAST AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, assessment, wheat, value chains, domestic production, international trade, governance, prices, farmers, wholesale markets, retail marketing, policies, Coronavirus, coronavirus disease, Coronavirinae, COVID-19
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:fpr:ssspwp:4&r=
  14. By: International Monetary Fund
    Abstract: Sustained political gridlock has hobbled reforms and increased macroeconomic vulnerabilities, but a new high-level effort offers hope for resolving the impasse. The authorities have been preparing a comprehensive reform plan which, if adopted by parliament, would pave the way to address the structural and fiscal imbalances in the economy and promote sustainable and inclusive growth. The authorities responded swiftly and decisively to the COVID-19 crisis with social distancing restrictions and fiscal, monetary, and financial policy support measures. In 2021, a high rate of vaccination was achieved, although there has been a major surge in infections with the recent arrival of the Omicron variant. A nascent economic recovery is underway, supported by higher oil prices and some relaxation of mobility restrictions. However, substantial uncertainties to the economic outlook underscore the importance of phasing out COVID-19 relief measures at a measured pace as the economy recovers, and of accelerating the reform momentum to limit risks and rebuild buffers. Banks entered the crisis from a position of strength and have remained well capitalized and highly liquid.
    Date: 2022–03–28
    URL: http://d.repec.org/n?u=RePEc:imf:imfscr:2022/089&r=
  15. By: Mason, Michael
    Abstract: Water infrastructure is an active element of state-making in southern Iraq, although major failings in water governance have in recent years triggered violent protests. Informed by scholarship on state clientelism and the political ecology of infrastructure, I examine the conflict-affected trajectories affecting public water management in Basra governorate. The degraded water treatment network manifests a post-2003 political system structured by embedded clientelism and politically sanctioned corruption. However, broad categorisations of clientelism can miss context-laden political effects produced by the spatial and technological configurations of infrastructure. I consider the state effects of water infrastructure practices in Basra governorate–how water supply networks and treatment technologies project state (in)capacity by means of volumetric and qualitative control over water flows. The empirical focus is on compact water treatment units (CWTUs), which are the main technology of public water supply in Basra governorate. I undertake an analysis of the deployment and management of CWTUs, as experienced by local actors responsible for, or politically contesting, the workings of water infrastructure in Basra city. Clientelist practices targeting public procurement and maintenance contracts have disrupted and delayed the upgrading of water infrastructure; yet these practices were enabled by neoliberal state-building that promoted the privatisation of public resources. Shortfalls in state capacity to provide clean drinking water in Basra are compounded by the growing hydro-climatic unpredictability of water flows.
    Keywords: infrastructure; clientelism; state effects; water management; Iraq
    JEL: R14 J01
    Date: 2022–06–01
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:114909&r=
  16. By: João Pedro Dytz (IPC-IG)
    Keywords: Réformes de la protection sociale; Tunisie; Maroc; COVID-19
    Date: 2021–11
    URL: http://d.repec.org/n?u=RePEc:ipc:pbfran:80&r=
  17. By: El Shabrawy, Atef; Gilligan, Daniel O.; Kurdi, Sikandra; Palloni, Giordano; Yassa, Basma
    Keywords: EGYPT, ARAB COUNTRIES, MIDDLE EAST, NORTH AFRICA, AFRICA, economic integration, economics, programmes, models, assets, remuneration, randomized controlled trials
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:fpr:menawp:arabic38&r=

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