Sharmila Devadas, Ibrahim Elbadawi, Norman V. Loayza
{"title":"Growth in Syria: losses from the war and potential recovery in the aftermath","authors":"Sharmila Devadas, Ibrahim Elbadawi, Norman V. Loayza","doi":"10.1080/17938120.2021.1930829","DOIUrl":"https://doi.org/10.1080/17938120.2021.1930829","url":null,"abstract":"ABSTRACT This paper addresses three questions: (1) what would have been the growth and income trajectory of Syria in the absence of war; (2) given the war, what explains the reduction in economic growth; and (3) what potential growth scenarios for Syria there could be in the aftermath of war. Conflict impact estimates point to negative GDP growth of −12% on average over 2011–2018, with output contracting to about one-third of the 2010 level. In post-conflict simulation scenarios, the growth drivers are affected by the assumed levels of reconstruction assistance, repatriation of refugees, and productivity improvements associated with three political settlement outcomes: a baseline (Sochi-plus) moderate scenario, an optimistic (robust political settlement) scenario, and a pessimistic (de facto balance of power) scenario. Respectively for these scenarios, GDP per capita average growth in the next two decades is projected to be 6.1%, 8.2%, or 3.1%, assuming a final and stable resolution of the conflict.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2021-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/17938120.2021.1930829","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43724630","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}
O. Awolaja, O. S. Yaya, A. E. Ogbonna, Solomon Onuche Joseph, X. Vo
{"title":"Unemployment hysteresis in Middle East and North Africa countries: panel SUR-based unit root test with a Fourier function","authors":"O. Awolaja, O. S. Yaya, A. E. Ogbonna, Solomon Onuche Joseph, X. Vo","doi":"10.1080/17938120.2021.1958587","DOIUrl":"https://doi.org/10.1080/17938120.2021.1958587","url":null,"abstract":"ABSTRACT Unemployment hysteresis of 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 the 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 confirmed the hysteresis hypothesis in Kuwait and Lebanon, while FADF-SB rejected 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 supported the hysteresis hypothesis in Turkey, while the same was confirmed only for Bahrain under the SURFADF and SURFKSS testing frameworks. The unemployment hysteresis hypothesis is confirmed for 12 (about 63.15% of the total number considered) MENA economies.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2021-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/17938120.2021.1958587","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47463753","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 nexus between economic growth and bank-based financial development: evidence from Morocco","authors":"Ahmed Kchikeche, Ouafaà Khallouk","doi":"10.1080/17938120.2021.1930830","DOIUrl":"https://doi.org/10.1080/17938120.2021.1930830","url":null,"abstract":"ABSTRACT In this paper, we investigate the causal link between bank-based financial development and economic growth in Morocco between 2003 and 2018 using a vector autoregression framework. We test for causality between economic growth and four different measures of bank-based financial development in both the short and the long run. Our results show that bank-based financial development causes economic growth in the short and the long run. Moreover, our results show that economic growth only causes bank-based financial development in the long run. At last, we show that the Moroccan banking sector’s integration with the international financial markets only affects the causal link between economic growth and bank-based financial development by providing short-run liquidity to Moroccan banks. Based on these results, barriers to the financial development of the Moroccan banking sector should be investigated and public policy should focus on designing appropriate policies and programs to alleviate these barriers in order to stimulate the growth of the Moroccan economy.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2021-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/17938120.2021.1930830","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"60485134","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":"Optimal government size and economic growth in developing and MENA countries: A dynamic panel threshold analysis","authors":"Ridha Nouira, M. Kouni","doi":"10.1080/17938120.2021.1898231","DOIUrl":"https://doi.org/10.1080/17938120.2021.1898231","url":null,"abstract":"ABSTRACT The research for this paper was conducted in order to investigate the optimal size of government as well as its effect on economic growth in selected MENA and developing countries over the period from 1988 to 2016. The results reveal that there is a government expenditure threshold effect on economic growth for all panel groups. Indeed, in accordance with an important body of recent literature, the threshold is between 10% and 30% for the whole sample, between 20% and 30% for MENA countries and between 10% and 20% for developing countries. The results obtained from the CS-ARDL model, recently developed by Chudik et al. (2017. Is There a Debt-threshold Effect on Output Growth? Review of Economics and Statistics, 99(1), 135–150. doi:10.1162/REST_a_00593), also showed that the relationship between government expenditure and economic growth is non-linear. Hence, we have found evidence of an inverted U shaped relationship between government expenditure and economic growth.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/17938120.2021.1898231","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"60485025","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":"Macroeconomic policies and the Iranian economy in the era of sanctions","authors":"M. Kandil, Ida A. Mirzaie","doi":"10.1080/17938120.2021.1898190","DOIUrl":"https://doi.org/10.1080/17938120.2021.1898190","url":null,"abstract":"ABSTRACT\u0000 This paper examines the impact of macroeconomic policies on the Iranian economy. The study covers the time between 1978-2017. The results illustrate the role of the money supply and government spending in supporting growth, although contributing to inflationary pressures in the long run, attesting to supply-side constraints. In the short-run, policies have aimed to provide support to the economy in the face of continued fluctuations with the oil price and spillovers from the geopolitical tensions attributed to sanctions. The exchange rate has played a key role in absorbing, but at times magnifying the adverse effects of these tensions. Continued deterioration of the fundamentals of the Iranian economy forced an official devaluation as the exchange rate proved to be misaligned with the fundamentals of the economy against the backdrop of the limited capacity of the Central Bank to continue to intervene to defend stability. In the meantime, a parallel exchange rate market has been flourishing to satisfy the market’s needs as culminated in the spread between the market exchange rate and the official exchange rate. A wider spread between the parallel market rate and the official rate has signified overvaluation of the rial and proved to be a major source of inflationary expectations and pressures. Wider spread has demanded frequent interventions by the Central Bank to defend the official rate and ultimately has forced an official devaluation of the exchange rate, further increasing inflationary pressures with negative effects on the output supply given high dependency on imports for consumption and investment.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/17938120.2021.1898190","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45692034","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":"Tackling market distortions to rise productivity: a study using firm-level manufacturing sector data from Morocco","authors":"J. Chauffour, Jose L. Diaz-Sanchez","doi":"10.1080/17938120.2021.1898230","DOIUrl":"https://doi.org/10.1080/17938120.2021.1898230","url":null,"abstract":"ABSTRACT This paper studies the effect of market distortions in the manufacturing sector in Morocco. Recent microdata are used to calculate the extent of resource misallocation associated to these distortions and the potential total factor productivity (TFP) gain resulting from their removal. Market distortions in the manufacturing sector in Morocco are higher compared with developed countries and slightly more important compared with other developing countries, such as China and India. These distortions decreased between 2007 and 2013. Full liberalization would raise TFP by about 84%. If distortions are removed to the level of selected developed countries with better resource allocation, the increase in TFP would be of 56%. The paper also suggests that industries that are more opened to competition such as textiles industries present lower levels of market distortions compared with more protected industries with relatively little competition, such as the food industry. Besides, some evidence is provided showing that smaller firms face more extensive distortions compared to medium and larger firms. The main results of the paper are robust to an alternative estimation that uses a different methodological framework with a less extensive theoretical framework.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/17938120.2021.1898230","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45008285","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 Magda Kandil Research Prize","authors":"","doi":"10.1080/17938120.2021.1935423","DOIUrl":"https://doi.org/10.1080/17938120.2021.1935423","url":null,"abstract":"","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/17938120.2021.1935423","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49342059","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":"Global value chain integration and productivity: the case of Turkish manufacturing firms","authors":"Yılmaz Kılıçaslan, Uğur Aytun, Oytun Meçik","doi":"10.1080/17938120.2021.1898189","DOIUrl":"https://doi.org/10.1080/17938120.2021.1898189","url":null,"abstract":"ABSTRACT In this study, we examine how firms’ positions (supplier, final, or both) in both global and domestic value chains (GVC and DVC) affect their productivity. This is said to be the first attempt in exploring the impact of the integration of firms on the GVCs on productivity generation in the Turkish manufacturing industry at the firm-level. The analysis is based on firm-level data obtained from the Turkish Statistical Institute (TurkStat) and covers the period from 2003 to 2015. The data used in the analysis includes all firms employing 20 or more employees in the Turkish manufacturing industry. Our findings based on both fixed-effects and GMM estimations show that while supplier position on the domestic chain has a negative effect on productivity, the same position in GVC vanishes this effect. The final firm position in the GVC, on the other hand, provide more benefits to SMEs than to large-scale firms.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/17938120.2021.1898189","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46861286","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":"Gendered patterns of industrialization in MENA","authors":"Yasemin Dildar","doi":"10.1080/17938120.2021.1898188","DOIUrl":"https://doi.org/10.1080/17938120.2021.1898188","url":null,"abstract":"ABSTRACT This paper analyzes different trajectories followed by Middle East and North Africa (MENA) countries with regard to feminization of the labor force. It uses accounting decomposition analysis for the manufacturing sector employment in eight MENA countries from 1983 to 2013. Overall feminization has been weak in the region, even for the best-performing countries. The trends in feminization are driven by labor-intensive industries, particularly textile and clothing, with Jordan being an exception with feminization in capital-intensive industries. As traditionally ‘female’ jobs lose their significance with structural transformation and capital deepening, manufacturing employment opportunities for women disappear, confirming the defeminization literature.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/17938120.2021.1898188","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46185514","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 Arab inequality puzzle: the role of income sources in Egypt and Tunisia","authors":"C. Krafft, Elizabeth E. Davis","doi":"10.1080/17938120.2021.1898233","DOIUrl":"https://doi.org/10.1080/17938120.2021.1898233","url":null,"abstract":"ABSTRACT Egypt and Tunisia are perceived to have high levels of inequality, yet based on standard measures, inequality in these two countries is not unusually high. In this study we explore a different dimension of inequality in Egypt and Tunisia by using a more complete measure of income and decomposing inequality by income sources (factor components). We find that higher-income households have more income sources than lower-income ones. Informal wage work and earnings from household enterprises are more common in Egypt than Tunisia, while formal wage work, pensions, and social assistance are more common in Tunisia. Social assistance does little to offset income inequality in either country. Enterprise earnings (in Egypt) and agricultural earnings (in Tunisia) as well as rent and other capital income in both countries play a large role in inequality. High inequality in these non-wage income sources and unequal access to income sources tied to wealth and capital may help explain why inequality is perceived to be high.","PeriodicalId":43862,"journal":{"name":"Middle East Development Journal","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/17938120.2021.1898233","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41552297","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}