{"title":"How does political risk matter for foreign direct investment into Arab economies?","authors":"Riadh Ben Jelili","doi":"10.1080/17938120.2023.2254190","DOIUrl":"https://doi.org/10.1080/17938120.2023.2254190","url":null,"abstract":"ABSTRACT The present paper extends previous work by Burger et al. ([2016]. Risky business: Political instability and sectoral greenfield foreign direct investment in the Arab world. World Bank Economic Review, 30(2), 306–331. https://doi.org/10.1093/wber/lhv030) that has attempted to investigate empirically the impact of political instability on FDI flows into the Arab host region. Specifically, based on gravity model approach and annual panel dataset on bilateral FDI projects in Arab countries from 2003 to 2018 (12,240 projects), it explores the following research questions: how does a host country’s political instability and institutional fragility affect the bilateral inward FDI project? Is there any sectoral specificity to this impact if it exists? Which component of political risk poses the most threat for the foreign investor in a specific sector? The empirical investigation highlights the negative, significant and robust impact of perceived political risk in the Arab host-country. It also establishes that there is substantial heterogeneity in foreign investment reactions to political risk reflecting both differences in the component of political risk and sectoral characteristics.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2023-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48527266","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The impact of sanctions on household welfare and employment in Iran","authors":"D. Salehi-Isfahani","doi":"10.1080/17938120.2023.2248697","DOIUrl":"https://doi.org/10.1080/17938120.2023.2248697","url":null,"abstract":"ABSTRACT Wide-ranging US sanctions against Iran in the past decade were in large part imposed to harm the living standards of ordinary Iranians in the hope that their leaders would submit to US demands to limit their nuclear program. In this study, I use extensive survey data to assess the impact of sanctions on household consumption and employment. Unsurprisingly, reduction in Iran's export of oil, which dealt a large negative blow to the economy, reduce household expenditures across income strata, raising poverty rates despite government attempts to assist the poor. By contrast, employment did not suffer as devaluation and falling real wages helped local production to substitute for imports that had been previously paid for by oil income. Probit analysis of panel data shows that, all else equal, living in urban areas, in households with older and female heads, and lack of health insurance increase the chance of falling into poverty after the 2018 shock of the US maximum pressure campaign.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2023-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41533977","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Tunisia’s economic development: why better than most in the Middle East but not East Asia authors: Mustapha K. Nabli and Jeffrey B. Nugent","authors":"Roberto Zagha","doi":"10.1080/17938120.2023.2215158","DOIUrl":"https://doi.org/10.1080/17938120.2023.2215158","url":null,"abstract":"ABSTRACT Nabli's and Nugent's book is a multi-dimension review of Tunisia's growth and development. It follows several lines of enquiry which include a historical, political and institutional analysis, as well as an analysis of the economic policies pursued in different periods. It concludes with an assessment of Tunisia's recent descent in political turmoil and regression, and its prospects for recovery.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2023-05-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45053283","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The tale of three public debt crises in Tunisia, Egypt, and the Ottoman Empire in the 1860s and 1870s","authors":"M. Nabli","doi":"10.1080/17938120.2023.2206754","DOIUrl":"https://doi.org/10.1080/17938120.2023.2206754","url":null,"abstract":"ABSTRACT The paper provides a comprehensive comparison of the experiences of debt accumulation and of the debt crises which took place within less than a decade during the second half of the nineteenth century in Tunisia, Egypt and the Ottoman Empire. The comparison covers the period from the 1850s to the 1880s, as the three countries were attempting to modernize and meet the challenges posed by the industrial revolution and the European expansion globally. They quickly faced financial constraints, increased their external borrowing and ran into crisis. These crises, which were triggered from 1867 to 1876, were part of the second wave of crises during the nineteenth century. The countries differed considerably in the way the crises were managed and resolved. In this context, based on available information, the paper provides a quantitative assessment of the debt burden and the various indicators of creditworthiness using constructed series on total GDP for the three countries for the period 1860–1884. This allows for a comparison of the full processes of debt accumulation, the triggering of the crises and their resolution. In doing so it brings together a wealth of data and information about the factors which impacted creditworthiness and capacity to service debt, relating to trade and fiscal revenues, which played a major role in determining the severity of the crises and the way they were resolved.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2023-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49635686","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Overeducation wage penalty for university graduates: evidence from the MENA region using machine learning techniques","authors":"O. Elamin","doi":"10.1080/17938120.2023.2167482","DOIUrl":"https://doi.org/10.1080/17938120.2023.2167482","url":null,"abstract":"ABSTRACT This study estimates the causal effect of overeducation on wages using cross-sectional survey data from three countries in the Middle East and North Africa region. The Labour Market Panel Survey data from Jordan in 2016, Tunisia in 2014, and Egypt in 2012 and 2018 are used. Overeducation occurs when an individual works in a job that requires someone with less education. Our analysis focuses on employees with high school or college education in paid-wage jobs. Overeducation in the data is self-reported. Between 10% and 50% of the samples in the various countries are overeducated, with overeducation being more pronounced among high school than college-educated people. The novel causal forest method as well as the nearest neighbour and propensity score matching methods are used to estimate the over-education wage penalty. The overeducation job mismatch wage penalty is significant in both total wage and basic wage. The size of the penalty, however, varies considerably between the three countries and is negatively associated with the prevalence of overeducation in the job market in each country. The penalty in total wage ranges from 17% in Egypt in 2012 to approximately 50% in Tunisia. High school graduates have smaller penalties. We recommend policies such as conducting more active labour market programmes to reduce the stock of mismatched workforce, enhancing job search services to improve the quality of matching in new vacancies, and following strategies that motivate entrepreneurship.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46348133","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Who can work from home in MENA?","authors":"Shireen Alazzawi","doi":"10.1080/17938120.2023.2200729","DOIUrl":"https://doi.org/10.1080/17938120.2023.2200729","url":null,"abstract":"ABSTRACT\u0000 The COVID-19 pandemic has had a profound impact on the world economy. The need for social distancing, lockdowns, or complete curfews has meant that this impact varied significantly across segments of society. Those unable to work remotely, or who work in settings necessitating close contact with others faced a trade-off between their lives and livelihoods. This trade-off was especially pronounced early on during the pandemic when vaccines had not yet been developed, hospitals were overwhelmed and governments were resorting to strict social distancing measures to mitigate the impact on their already strained healthcare systems. In this study, I examine the extent to which jobs can be successfully performed remotely in five MENA countries: Algeria, Egypt, Jordan, Palestine and Tunisia. I develop a teleworkability index using micro data on occupational characteristics. I find that relatively few jobs in MENA countries are compatible with teleworking and this share varies considerably by industry, gender, age and the formality of employment. I further investigate the ability to work from home in practice by considering the digital divide (a lack of reliable access to vital tools for teleworking, such as a personal computer and reliable internet access) as well as actual work from home behavior during the pandemic using real time surveys. I find that even for those who have high telework potential only few have access to computer and internet. Surveys conducted during the pandemic suggest that our measure of teleworkability was quite close to actual work from home behavior in each country.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45690625","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do labor markets and the social contract increase female youth unemployment in the GCC countries?","authors":"Wasseem Mina","doi":"10.1080/17938120.2023.2206759","DOIUrl":"https://doi.org/10.1080/17938120.2023.2206759","url":null,"abstract":"ABSTRACT In the high-income Gulf Cooperation Council countries, the female youth unemployment rate is nearly double the male youth unemployment rate. The segmented labor market with a relatively inflexible national labor market segment – coupled with a generous social contract – provide job protection to nationals and further the benefits of the social contract. These two factors may shape national youth preferences in favor of protected government jobs and raise youth reservation wages, which increase female youth unemployment. We conjecture that flexible non-segmented labor markets improve female youth unemployment rate while the social contract worsens it. Empirical evidence shows labor market flexibility and the social contract improve female youth unemployment rate, a result robust to changes in model specification and the sample. However, labor market flexibility is essential to the improvement in the female youth unemployment rate, while the social contract is not. This research has an important policy implication for selecting the appropriate tool to address youth unemployment.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46679478","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Globalization and obesity in the GCC countries","authors":"Z. El-Sahli","doi":"10.1080/17938120.2022.2160182","DOIUrl":"https://doi.org/10.1080/17938120.2022.2160182","url":null,"abstract":"ABSTRACT The Gulf Cooperation Council (GCC) countries have some of the highest obesity rates in the world. At the same time, the GCC countries have become increasingly integrated in the global economy as they attempt to diversify their economies. This raises the question whether rapid development and globalization contribute to obesity in these countries. To deal with the existing autocorrelation in the error term and the endogeneity problem, a dynamic panel econometric model is used to estimate the effect of globalization in its various dimensions on obesity in the GCC countries. This study finds evidence for positive and significant effect of social and economic globalization on obesity rates in the GCC countries relative to the rest of the world. The results suggest that (rapid) globalization can lead to higher obesity rates in emerging economies. Hence, policy has an important role to play to cushion the impact of globalization on health and nutrition.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46941997","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"On the unfinished business of stabilization programs: a CGE model of Egypt","authors":"City Eldeep, Chahir Zaki","doi":"10.1080/17938120.2023.2200727","DOIUrl":"https://doi.org/10.1080/17938120.2023.2200727","url":null,"abstract":"ABSTRACT Several emerging economies have embarked on structural adjustment reform programs that focused more on short-run-oriented stabilization reforms. Yet, longer-term structural policies that can shift their potential GDP were not fully taken into consideration. Thus, this paper contributes to the literature in three ways. First, we contrast the effects of stabilization and allocation policies in order to examine to what extent they complement or substitute each other. Second, we analyze how the effects of such policies can differ in the short and long term and with different market structures (perfect vs. imperfect competition). Third, we develop a CGE model for Egypt that was subject to a recent reform program developed with the IMF. Our main findings show that stabilization reforms reduce economic growth by 2.5% in the short run. Yet, they positively affect it over time especially if they are accompanied by structural reforms. Indeed, the latter increase economic growth (of 8.6% in the long run). Furthermore, from a social perspective, stabilization reform deteriorates households’ welfare in the short run. Finally, we find that negative effects of stabilization and structural reforms are more pronounced under imperfect competition pointing out the importance of an effective competition policy.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47523730","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The impact of sand and dust storms on agriculture in Iraq","authors":"H. Ahmadzai","doi":"10.1080/17938120.2023.2166748","DOIUrl":"https://doi.org/10.1080/17938120.2023.2166748","url":null,"abstract":"ABSTRACT Sand and dust storms are a common natural hazard in arid and dry areas of the Middle East and North Africa severely affecting human life and economic sectors, including agriculture production. In this paper, I explore the potential impact of sand and dust storms (SDS) on agricultural sub-sectors in Iraq by combining the household-level production and socioeconomic data with the climate dataset to allow the empirical assessment of agricultural impacts due to dust storms. I find compelling evidence that exposure of crops and livestock to dust storms significantly diminish agricultural productivity, vegetation cover and have significant bearings on the household welfare. Our analysis reveals a 1.1% reduction in the value of crop production as a result of an additional SDS event. This corresponds to about 0.045% losses in the GDP of Iraq, an amount equivalent to about $0.1 billion. Crop yields are reduced significantly ranging from 0.9% to 3% for an additional day of sand and dust storms.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48671138","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}