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on MENA - Middle East and North Africa |
| By: | Mohammad Reza Farzanegan; Nader Habibi |
| Abstract: | This study examines the impact of international economic sanctions, imposed on Iran due to its nuclear program, on the development of the middle class. Specifically, it investigates how the middle class in Iran would have developed in the absence of these sanctions post-2012. To address this question, we employ a synthetic control model to create a counterfactual scenario for Iran, using a weighted average of other comparable countries that mirror pre-sanction Iran, but did not experience significant international sanctions. By comparing the middle-class size of this counterfactual Iran with the actual Iran that faced major economic sanctions, our results indicate that the annual middle-class size would have been approximately 11 percentage points larger, on average, without the post-2012 sanctions. Our findings are robust across various tests, including placebo tests and synthetic difference-in-difference analyses. The latter analysis shows that the estimated average effect of sanctions on the middle-class size of Iran from 2012 to 2019 is highly statistically significant. Finally, we provide evidence on the relevance of real GDP per capita and merchandise imports as key selected channels through which sanctions negatively affect the size of the middle class. |
| Keywords: | sanctions, Iran, middle class, poverty, inequality, synthetic control method, counterfactual |
| JEL: | F51 I31 P36 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11175&r= |
| By: | Saha, Koustuv; Saha, Kajari; Yadav, Shraddha |
| Keywords: | Labor And Human Capital, International Development |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:344072&r= |
| By: | Ania Thiemann |
| Abstract: | Weak productivity in Egypt is rooted in deep-seated structural causes that impede market competition and prevent a more efficient resource allocation. This implies a number of challenges for economic policy to meet the objectives for long-term sustainable growth as set out in the National Structural Reform Programme, but the government is determined to tackle the issues, and is committed to increase the role of the private sector. Market mechanisms such as business entry and exit, and growth of the most efficient firms, appear to be weaker than in many similar emerging markets. Recent reforms have started to tackle heavy regulatory burdens and barriers that hinder market entry and encourage informality and should be pursued, while the judiciary system still requires improvement. Competition from abroad, and the attraction of foreign direct investment are hampered by trade barriers, implying that Egypt does not fully benefit from global value-chains and spillovers of technology and knowledge that would help lift productivity. The way state-owned companies are operating across a several sectors prevents private businesses from competing on a level playing field, although the government has recently started to take steps to level the playing field for all firms. Moreover, many businesses still face difficulties in accessing finance, as banks overwhelmingly prefer to lend to the government. Enhancing access to finance and improving digitalisation would contribute to a more competitive environment, lifting business sector growth. |
| Keywords: | access to finance, anti-corruption measures, Business climate, competition, corporate governance, digital diffusion, Egypt, foreign investment, informal economy, investment, judiciary efficiency, level playing field, network sectors, private sector development, privatisation, productivity, regulatory reform, resource allocation, SMEs, state-owned enterprises, tax incentives, trade barriers |
| JEL: | D24 E26 F13 F21 G21 G34 G38 H11 H25 K21 K23 K35 K42 L11 L14 L25 L26 L33 L40 L50 O19 O33 O53 |
| Date: | 2024–07–16 |
| URL: | https://d.repec.org/n?u=RePEc:oec:ecoaaa:1808-en&r= |
| By: | Manel Zidi (ESSECT - Ecole Supérieure des Sciences Economiques et Commerciales de Tunis - Université de Tunis); Helmi Hamdi (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon) |
| Abstract: | The objective of this article is to empirically examine the effect of financing structure on the market share of banks, and their performance in Tunisian banks. To this end, we gathered financial statements of ten commercial banks over the period 2012-2019, and we employed the panel-corrected standard error (PCSE) regression. The empirical results show that the bank capital structure measured by the equity to total assets ratio negatively affects bank performance while the debt to total assets ratio can be a robust and positive driver of bank performance. Through this research, we recommend to Tunisian commercial banks to reduce their operating costs through a better management of their resources, and to find cheaper sources of financing such as increasing equity. We also recommend to Tunisian commercial banks to diversify further their revenues in order to enhance their performance and to generate more profits. |
| Keywords: | Capital Structure, Bank Profitability, Bank Performance JEL Classifications: G21, C23, L2 |
| Date: | 2024–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04616733&r= |
| By: | Baki Cem Sahin |
| Abstract: | [EN] The debates surrounding zombie firms have been reinvigorated by the implementation of support programs to mitigate the effects of the COVID-19 pandemic. Zombie lending poses threats to the economy by distorting the efficient allocation of resources and diminishing overall production capacity. Furthermore, zombie lending raises financial stability risks. This study delves into zombie lending, with particular interest in how it evolves and its effects in Turkiye. The findings reveal important outcomes. Firstly, the ratio of zombie firms in Turkiye has decreased after the COVID-19 pandemic subsequent to reaching its peak in 2020. Secondly, main creditor banks have been less inclined to cut credit lines to financially distressed firms, and this may have contributed to zombification. Lastly, zombie firms exert negative spillover to other firms. These findings emphasize that the challenges posed by zombie lending should be addressed to ensure the efficient allocation of resources, strengthen production, and safeguard financial stability. [TR] COViD-19 pandemisinin etkilerini azaltmaya yonelik destek programlariyla zombi firmalara iliskin tartismalar yeniden canlanmistir. Zombi krediler kaynaklarin verimli dagilimini bozarak ve ekonomideki uretim kapasitesini azaltarak ekonomiye tehdit olusturmaktadir. Ayrica zombi krediler finansal istikrara yonelik riskleri artirmaktadir. Bu calisma, zombi kredileri Turkiye'deki gelisimi ve etkileri ozelinde incelemektedir. Bulgular onemli sonuclar ortaya koymaktadir. Oncelikle, Turkiye'deki zombi firmalarin orani COVID-19 pandemisi sonrasinda 2020'de zirveye ulastiktan sonra azalmistir. Ikinci olarak, ana bankalar mali sikinti icindeki firmalara kredi kisitlamasini daha az uygulamis ve bu zombilesmeye katkida bulunmus olabilir. Son olarak, zombi firmalar diger firmalar uzerinde olumsuz etkiye sahiptir. Bu bulgular, kaynaklarin etkin dagilimini saglamak, uretimi artirmak ve finansal istikrari korumak icin zombi kredilerin ortaya cikardigi zorluklarin ele alinmasi gerektigini vurgulamaktadir. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tcb:econot:2410&r= |