Economic Research Forum (ERF)

Mohammad Reza Farzanegan

Author

Mohammad Reza Farzanegan
Professor of Economics of the Middle East, Philipps-Universität Marburg, Center for Near and Middle Eastern Studies (CNMS) and School of Business and Economics, Marburg, Germany

Mohammad Reza Farzanegan is a Full Professor of Economics of the Middle East at the Center for Near and Middle Eastern Studies (CNMS) and the School of Business and Economics at Philipps-Universität Marburg in Germany. He earned his Dr.rer.pol. in Economics at Technische Universität Dresden, while being supported by a research grant from the Deutscher Akademischer Austauschdienst (2006-2009). He later received the Georg Forster Research Fellowship for postdoctoral researchers from the Alexander von Humboldt Foundation at ZEW Mannheim & TU Dresden (2010-2012). He is a Research Fellow of the Economic Research Forum (ERF) in Cairo and a member of its Advisory Board. Additionally, he is a CESifo Research Network Fellow in Munich. He has numerous publications in international peer-reviewed journals, covering topics such as the political economy of sanctions, development economics, and institutional economics.

Content by this Author

Economic consequences of the 2003 Bam earthquake in Iran

Over the decades, Iran has faced numerous devastating natural disasters, including the deadly 2003 Bam earthquake. This column reports evidence on the unexpected economic boost in Bam County and its neighbours after the disaster – the result of a variety of factors, including national and international aid, political mobilisation and the region’s cultural significance. Using data on the intensity of night-time lights in a geographical area, the research reveals how disaster recovery may lead to a surprising economic rebound.

Sanctions and energy efficiency in Iran’s industries

What is the effect of economic sanctions on the energy efficiency of Iran’s industries? This column reports the findings of new research, which examines the impact of sanction intensity within industrial sub-sectors of the Iranian economy on their energy efficiency.

Corruption in Iran: the role of oil rents

How do fluctuations in oil rents influence levels of corruption in Iran? This column reports the findings of new research, which examines the impact of increases in the country’s oil revenues on corruption, including the mechanisms through which the effects occur – higher inflation, greater public spending on the military and the weakness of democratic institutions.

Economic roots of early marriage in Iran

Despite the documented harms of being married off before the age of 18, particularly for girls, early marriage remains common in parts of Iran. This column summarises research that sheds light on the economic factors that drive this practice, using unique provincial data to show that poverty, inflation and income inequality are key determinants –while religiosity is not. The findings suggest that economic policies can play a crucial role in reducing the prevalence of child marriage.

Natural disaster literacy in Iran: survey evidence from Tehran

The frequent floods, earthquakes, and heat waves in the Middle East and North Africa underscore the urgent need to assess the region's preparedness for natural disasters. This column summarizes the state of 'natural disaster literacy' in various parts of Tehran, the capital of Iran and one of the most populous metropolitan areas in MENA. Data from a survey conducted in the winter of 2020/21 enabled the development of a disaster literacy index, which helps to identify the city's most vulnerable districts.

Sanctions and carbon emissions in Iran

How are Iran’s energy use and emissions of carbon dioxide affected by the imposition of economic sanctions? This column summarises new research that analyses a range of different scenarios and which takes account of multiple economic, social and environmental dimensions, notably what happens to growth and energy intensity, and whether sanctions are lifted.

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.

The human toll: Assessing the damage caused by revolution and war in Iran

Wars and revolutions have a notable effect on several socio-economic metrics, including life expectancy. Measuring these impacts is not always straightforward. This column presents new findings from a study on Iran, using a counterfactual scenario to estimate how the Islamic Revolution and subsequent war with Iraq affected life outcomes for Iranians. The effects are substantial, with the combination of the regime change and conflict that followed leading to a five-year fall in average life expectancy. In other words, had there been no revolution and war, the life expectancy of an average Iranian would have been half a decade longer.

The impact of revolution and war on income inequality in Iran

How did Iran’s revolution of 1978-79 and the war with Iraq from 1980 to 1988 affect levels of income inequality levels in the country? Would income inequality have developed differently in Iran if the revolution and war had never occurred? And how significant were the effects of the revolution and war in reducing income inequality? This column reports new research findings on these questions.

How business survives under sanctions: the experience of Iranian firms

How have firms in Iran responded to the international economic sanctions against the country? This column reports evidence on the operational strategies used by micro, small and medium-sized enterprises to increase their chances of survival.

Corruption and internal conflict in Iran

To what extent does increased corruption in a country lead to greater levels of internal conflict in the form of riots, strikes and anti-government demonstrations? This column reports new evidence from Iran over the past 60 years.

Air pollution and internal migration in Iran

The quality of the local environment can have a significant impact on residents’ decisions about whether to migrate to another part of the country. This column reports research showing that Iranian provinces with higher levels of air pollution experience increased net outmigration. Policy-makers seeking to reduce internal migration could focus more on environmental projects, addressing the factors that contribute to the degradation of air quality, particularly in the most polluted areas.

Oil price shocks, protest and the shadow economy

Can negative oil price shocks raise the risk of internal conflict in oil-dependent economies? Not really: as this column reports, evidence from 144 countries over the period 1991-2015 indicates that the destructive effects are mitigated when informal activities are a bigger part of the whole economy. The results imply the helpful role of the shadow economy in keeping political systems stable under rising economic pressures.

Experiencing the Iran-Iraq war: effects on later life views on defence

Iranians experienced a destructive eight-years war with Iraq between 1980 and 1988, which together with the Islamic Revolution resulted in significant economic costs. This column reports new research that examines individuals’ experiences of the Iran-Iraq war during early adulthood (18-25 years) and the impact on their preference for strong national defence forces.

Oil rents and Iran’s middle class

Iran’s middle class has experienced persistent expansion over the past 50 years, excluding the period coinciding with revolutionary turmoil and the Iran-Iraq war. As this column explains, the growth of the middle class has been significantly influenced by oil revenues acting to expand non-oil trade, the service sector and the real estate sector. But growth has not been accompanied by improvements in the quality of political institutions.

Most read

Trust in Lebanon’s public institutions: a challenge for the new leadership

Lebanon’s new leadership confronts daunting economic challenges amid geopolitical tensions across the wider region. As this column explains, understanding what has happened over the past decade to citizens’ trust in key public institutions – parliament, the government and the armed forces – will be a crucial part of the policy response.

Climate change: a growing threat to sustainable development in Tunisia

Tunisia’s vulnerability to extreme weather events is intensifying, placing immense pressure on vital sectors such as agriculture, energy and water resources, exacerbating inequalities and hindering social progress. This column explores the economic impacts of climate change on the country, its implications for achieving the sustainable development goals, and the urgent need for adaptive strategies and policy interventions.

Small businesses in the Great Lockdown: lessons for crisis management

Understanding big economic shocks like Covid-19 and how firms respond to them is crucial for mitigating their negative effects and accelerating the post-crisis recovery. This column reports evidence on how small and medium-sized enterprises in Tunisia’s formal business sector adapted to the pandemic and the lockdown – and draws policy lessons for when the next crisis hits.

Assessing Jordan’s progress on the sustainable development goals

Global, regional and national assessments of countries’ progress towards reaching the sustainable development goals do not always tell the same story. This column examines the case of Jordan, which is among the world’s leaders in statistical performance on the SDGs.

Qatarisation: playing the long game on workforce nationalisation

As national populations across the Gulf have grown and hydrocarbon reserves declined, most Gulf countries have sought to move to a more sustainable economic model underpinned by raising the share of citizens in the productive private sector. But, as this column explains, Qatar differs from its neighbours in several important ways that could render aggressive workforce nationalization policies counterproductive. In terms of such policies, the country should chart its own path.

The threat of cybercrime in MENA economies

The MENA region’s increasing access to digital information and internet usage has led to an explosion in e-commerce and widespread interest in cryptocurrencies. At the same time, cybercrime, which includes hacking, malware, online fraud and harassment, has spread across digital networks. This column outlines the challenges.

Economic consequences of the 2003 Bam earthquake in Iran

Over the decades, Iran has faced numerous devastating natural disasters, including the deadly 2003 Bam earthquake. This column reports evidence on the unexpected economic boost in Bam County and its neighbours after the disaster – the result of a variety of factors, including national and international aid, political mobilisation and the region’s cultural significance. Using data on the intensity of night-time lights in a geographical area, the research reveals how disaster recovery may lead to a surprising economic rebound.

Macroeconomic policy-making for sustainable development in Egypt

In recent years, economic policy in Egypt has been focused primarily on macroeconomic stabilisation to curb inflation, to reduce the fiscal deficit and the current account deficit, and to increase GDP growth. As this column explains, this has come at the expense of the country’s progress on the Sustainable Development Goals, which is rather modest compared with other economies in the region or at the same income level. Sustainable development needs to be more integrated with the conception and implementation of fiscal and monetary policies.

The impact of climate change and resource scarcity on conflict in MENA

The interrelationships between climate change, food production, economic instability and violent conflict have become increasingly relevant in recent decades, with climate-induced economic shocks intensifying social and political tensions, particularly in resource-constrained regions like MENA. This column reports new evidence on the impact of climate change on economic and food production outcomes – and how economic stability, agricultural productivity and shared water resources affect conflict. While international aid, economic growth and food security reduce the likelihood of conflict, resource scarcity and shared water basins contribute to high risks of conflict.

Qatar’s pursuit of government excellence: promises and pitfalls

As Qatar seeks to make the transition from a hydrocarbon-based economy to a diversified, knowledge-based economy, ‘government excellence’ has been identified as a key strategic objective. This column reports what government effectiveness means in terms of delivery of public services, digitalisation of services, and control of corruption – and outlines the progress made to date on these development priorities and what the country needs to do to meet its targets.




Linkedin