Economic Research Forum (ERF)

February

Highways to hell: road-building in Iraq has increased the violence

Far from promoting peace and economic development, infrastructure investment programmes in conflict zones can have the opposite effect. This column reports evidence that the billion dollar US road-building programme in Iraq has led to more not less violence.

Obstacles to doing business in Egypt

A key question put to firms in the World Bank’s Enterprise Surveys focuses on their perceptions of the biggest obstacles to doing business. This column reports evidence from the 2016 survey of establishments in Egypt, which shows how the obstacles that top business people report is influenced by the size of their firms, the industry, the geographical location, the market orientation and the managers’ level of education.

Reforming Arab economies in times of distrust

Across the Arabic-speaking world, citizens have once again been taking to the streets. This column, originally published by Brookings, argues that to address the latest protests, Arab governments should choose reform paths that put the initial burden on themselves.

Gender dynamics in labour markets in MENA and South Asia

In common with much of the world, the geographically contiguous regions of MENA and South Asia have experienced fertility decline and rising levels of female education, both considered conducive to women’s entry into paid work – yet rates of female labour force participation have remained intransigently low. This column outlines what explains this striking regional feature and potential policy responses given evidence that women’s engagement with the labour market contributes to inclusive growth.

Student protests in 1970s Turkey: the impact on later lives

From the Arab Spring to the ‘gilets jaunes’ in France and from anti-Revolution protests in Iran to Hong Kong’s umbrella revolution, it is common to see mass socio-political movements in the early twenty-first century. This column looks back to earlier uprisings – the Turkish student protests that took place between 1978 and 1980 and eventually led to a military coup in 1980 – to explore how exposure to violent political turmoil affects people’s educational and labour market outcomes later in life.

Host and refugee populations: cooperation in a fragmented society

Lebanon is currently hosting around one million refugees from the war in Syria – and given longstanding tensions between the two countries, the question of whether the refugees and their hosts can live harmoniously is one of great policy interest. This column reports the results of a pilot study that aims to measure cooperation between the native and refugee populations.

Most read

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.

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.

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.

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.

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.

Intimate partner violence: the impact on women’s empowerment in Egypt

Although intimate partner violence is a well-documented and widely recognised problem, empirical research on its prevalence and impact is scarce in developing countries, including those in the Middle East and North Africa. This column reports evidence from a study of intra-household disparities in Egypt, taking account of attitudes toward gender roles, women’s ownership of assets, and the domestic violence that wives may experience from their husbands.

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.

Financial constraints on small firms’ growth: pandemic lessons from Iran

How does access to finance affect the growth of small businesses? This column presents new evidence from Iran before and during the Covid-19 pandemic – and lessons learned by micro, small and medium-sized enterprises.

The economics of Israeli war aims and strategies

Israel’s response to last October’s Hamas attack has led to widespread death and destruction. This column outlines the impact thus far, including the effects on food scarcity, migration and the Palestinian economy in both Gaza and the West Bank.

Happiness in the Arab world: should we be concerned?

Several Arab countries have low rankings in the latest comparative assessment of average happiness across the world. But as this column explains, the average is not a reliable summary statistic when applied to ordinal data. The evidence from more robust analysis of socio-economic inequality in happiness suggests that policy-makers should be less concerned about happiness indicators than the core development objective of more equitable social conditions for citizens.