Economic Research Forum (ERF)

December

Financial informality among formal firms: evidence from Egypt

A significant number of small and medium-sized enterprises stay disconnected from credit markets even after they become formal firms – a state that can be characterised as ‘financial informality’. Access to credit is valuable for firms with substantial growth opportunities, but it can become more difficult to hide revenues from the tax authorities. This column, originally posted on the GlobalDev blog, explores the characteristics of firms and local credit markets that affect this trade-off in Egypt – and potential policies for greater financial inclusion of unbanked firms and those discouraged from applying for loans to fund investment.

Better roads improve regional economies: evidence from Turkey

Paving dirt roads and building highway networks have unsurprisingly been shown to produce substantial economic gains, but what is the impact on domestic trade from improving existing road networks? Using spatially disaggregated data on major capacity upgrades of existing road networks and domestic transactions in Turkey, this column, originally published at VoxEU, estimates a large positive impact of reduced travel times on trade and regional employment, and long-run aggregate real income gains of 2-3%.

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.

Most read

The green transition in MENA economies: challenges and policy pathways

The economies of the Middle East and North Africa are at a critical turning point. Global decarbonisation pressures, energy market volatility and technological transformation are increasingly challenging hydrocarbon-based growth models. This column argues that the green transition is not only an environmental necessity but also a strategic economic imperative.

Beyond job creation: how can Egypt’s gender gap in work be closed?

More than 2 million jobs are needed each year to absorb new entrants into Egypt’s labour market and raise the country’s employment rate. The job challenge is even more acute for women, whose labour force participation remains low despite recent gains in education. This column reports on the second Development Dialogue, an ERF–World Bank Group joint initiative, which brought together students, scholars, policy-makers and private sector leaders at the American University in Cairo to consider how the country’s gender gap in work can be closed.

The political economy of algorithms in the Middle East

The Middle East is entering a new political-economic era – one in which algorithms, data and artificial intelligence may become as strategically important as oil once was. Across the region, governments are investing heavily in digital infrastructure, smart governance and AI-driven economic transformation. This column outlines how AI and algorithmic governance are reshaping power, inequality and state capacity in the region.

Digitalisation, global value chains and regional integration in MENA & SSA

Participation in global value chains is vital for countries pursuing structural transformation and inclusive economic development. This column summarises new evidence on how much production processes have been globalised in Africa and the Middle East relative to other regions; whether this process has taken place with partners within or outside the region; and whether it has taken place more in manufacturing or services.

How trade policy can reduce MENA’s cereal import vulnerability

Heavy dependence on imported cereals, combined with climate change, water scarcity and geopolitical uncertainty, continues to threaten food resilience across MENA. This column explains how an inclusive trade policy can play a key role in making the region’s food security less vulnerable to shocks.




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