Economic Research Forum (ERF)

Ali Akarca

Author

Ali Akarca
University of Illinois at Chicago

Ali T. Akarca is a Professor Emeritus of Economics at the University of Illinois at Chicago with which he has been affiliated since 1975. He has also worked as a Research Associate at the Department of Public Policy Studies of the University of Chicago during 1978-1980. He has articles on the behavior of oil prices and their impact on the economy; the effect of tax rate changes on tax revenues; economic, social, and political determinants of election outcomes and government performance; causes and consequences of coups; and economic and political consequences of internal migration. These appeared in books and journals such as Journal of Energy and Development, Resource and Energy Economics, Journal of Economics, Public Finance Review, Public Choice, Electoral Studies, Insight Turkey, European Urban and Regional Studies, Journal of Economic Studies, Middle East Development Journal, and IZA Journal of Migration.

Content by this Author

Interactions of economic, political and cultural populism

Economic populism often leads to political and cultural populism, according to this column, the final one in a series of three on this increasingly prominent phenomenon. Because the returns to ‘election economics’ are positive in the short run – in terms of growth and popular support – but negative in the long run as the economy suffers, governments eventually have to resort to authoritarianism. Populists often end up blaming migrants, minorities, international institutions and foreign powers for the declining economy.

Economic and political populism – and an application to Turkey

Populist governments often practice ‘election economics’, boosting public spending ahead of a vote to attract more support and reining it in afterwards to avoid inflation. This column, the second in a series of three on the increasingly prominent economic and political phenomenon of populism, explores the experiences of Turkey.

Three types of populism: economic, political and cultural

Governments that stimulate the economy before elections by increasing transfer payments, authoritarian leaders who suppress opposition and undermine institutions that provide checks and balances, and political parties and governments that espouse racist and anti-immigrant policies are all referred to as ‘populist’. This column, the first of three on this increasingly prominent phenomenon, argues that we should distinguish three different kinds of populism: economic, political and cultural.

Electoral participation in Turkey: what drives high voter turnout?

Well-functioning democracies and economies require voters that evaluate the economic performance of governments and reward or punish them accordingly. For that reason, low and steadily declining electoral participation in North America and Western Europe is viewed with alarm. There is no such tendency in Turkey, where the turnout rate is about twice as high as in many industrialised countries. This column discusses key factors that determine electoral participation in Turkey.

Economic performance under different types of Turkish governments

Turkey has been ruled by a wide variety of governments over the past two-thirds of a century: single-party governments; coalitions partnered by two or more parties and by ideologically compatible and incompatible parties; and minority and military governments. This column explains why the order in which one type came after another was not accidental, but followed a pattern induced by coups. Economic performance under the different types of government has varied systematically.

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Making trade agreements more environmentally friendly in the MENA region

Trade policy can play a significant role in efforts to decarbonise the global economy. But as this column explains, there need to be more environmental provisions in trade agreements in which developing countries participate – and stronger legal enforcement of those provisions at the international level. The MENA region would benefit substantially from such changes.

Jordan: navigating through multiple crises

Jordan’s real GDP per capita is today no higher than it was 40 years ago. While external factors have undoubtedly had an adverse effect on the country’s economic outcomes, weak macroeconomic management and low public spending on investment and the social sectors have also played a substantial role. This column explores what can be done to reduce high public debt, accelerate private sector development and enhance social outcomes.

Iran’s globalisation and Saudi Arabia’s defence budget

How might Saudi Arabia react to Iran's renewed participation in global trade and investment? This column explores whether the expanding economic globalisation of Iran, following the lifting of nuclear sanctions, could yield a peace dividend for Saudi Arabia, consequently dampening the Middle East arms competition. These issues have attracted increased attention in recent times, notably after a pivotal agreement between the two countries in March 2023, marking the resumption of their political ties after a seven-year conflict.

Egypt and Iraq: amenities, environmental quality and taste for revolution

The Middle East and North Africa is a region marked by significant political turbulence. This column explores a novel dimension of these upheavals: the relationship between people’s satisfaction with, on one hand, the amenities to which they have access and the environmental quality they experience, and, on the other hand, their inclination towards revolutionary actions. The data come from the World Value Survey collected in 2018 in Egypt and Iraq.

Global value chains and domestic innovation: evidence from MENA firms

Global interlinkages play a significant role in enhancing innovation by firms in developing countries. In particular, as this column explains, participation in global value chains fosters a variety of innovation activities. Since some countries in the Middle East and North Africa display a downward trend on measures of global innovation, facilitating the GVC participation of firms in the region is a prospective channel for stimulating underperforming innovation.

Labour market effects of robots: evidence from Turkey

Evidence from developed countries on the impact of automation on labour markets suggests that there can be negative effects on manufacturing jobs, but also mechanisms for workers to move into the services sector. But this narrative may not apply in developing economies. This column reports new evidence from Turkey on the effects of robots on labour displacement and job reallocation.

Food insecurity in Tunisia during and after the Covid-19 pandemic

Labour market instability, rising unemployment rates and soaring food prices due to Covid-19 are among the reasons for severe food insecurity across the world. This grim picture is evident in Tunisia, where the government continues to provide financial and food aid to vulnerable households after the pandemic. But as this column explains, the inadequacy of some public policies is another important factors causing food insecurity.

Manufacturing firms in Egypt: trade participation and outcomes for workers

International trade can play a large and positive role in boosting economic growth, reducing poverty and making progress towards gender equality. These effects result in part from the extent to which trade is associated with favourable labour market outcomes. This column presents evidence of the effects of Egyptian manufacturing firms’ participation in exporting and importing on their workers’ productivity and average wages, and on women’s employment share.

Do capital inflows cause industrialisation or de-industrialisation?

There is a clear appeal for emerging and developing economies, including those in MENA, to finance investment in manufacturing industry at home with capital inflows from overseas. But as the evidence reported in this column indicates, this is a potentially risky strategy: rather than promoting industrialisation, capital flows can actually lead to lower manufacturing value added and/or a reallocation of resources towards industries with lower technology intensity.

Sustaining entrepreneurship: lessons from Iran

Does entrepreneurial activity naturally return to long-term average levels after big economic disturbances? This column presents new evidence from Iran on trends in entrepreneurship among various categories of firm size, sector and location – and suggests policies that could be effective in promoting entrepreneurial activities.