Economic Research Forum (ERF)

February

Drivers of educational inequality in Jordan during the pandemic

Jordan had one of the most stringent lockdowns in response to Covid-19, with schools closed for long periods. As this column explains, the variation in children’s access to online learning has led to greater inequality in educational outcomes.

Fostering decent job creation and formalising informality in MENA

The crisis posed by employment informality in the Middle East and North Africa must be tackled head on in the region’s pursuit of sustainable and inclusive development. As this column explains, in the drive to formalise occupations and create an adequate number of decent jobs, there is a need for vocational upskilling and life-long learning, support for formal enterprises and promotion of a ‘social and solidarity economy’.

The multilateral financing paradox

Policy-makers increasingly tout multilateral development banks as being uniquely positioned to address today’s pressing global challenges, particularly debt crises in the developing world. But as this Project Syndicate column explains, their lending mostly benefits middle-income countries rather than the lower-income countries that need it most.

The grand waiting game: why Lebanon’s elites postpone compromise

What explains the intransigence of Lebanon’s political elites to resolve the country’s long-running financial and economic crisis? This column argues that the determinants for reaching political settlements – a succession of deals among powerful political elites on how to distribute political power and economic resources – have changed over time, making a grand waiting game the best strategy for each party.

The year ahead: a view from the Nile

In 2023, what lies ahead for Egypt, the Middle East and North Africa, and the wider world? This column, first published by The NileView, suggests that this year is likely to be a blend of volatility, uncertainty, complexity and ambiguity.

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.