Productivity and Resource Misallocation: Evidence From Firms in Middle East and North Africa (MENA) Region Countries

The Economic Research Forum (ERF) Working Paper No. 1266, 2018

39 Pages Posted: 3 Jul 2019

See all articles by Eleftherios Giovanis

Eleftherios Giovanis

Manchester Metropolitan University-Business School, Department of Economics, Policy and International Business; Aydin Adnan Menderes University, Nazilli Faculty of Economics and Administrative Sciences

Oznur Ozdamar

Aydın Adnan Menderes University

Date Written: December 1, 2018

Abstract

Resource reallocation from low to high productivity firms can generate large aggregate productivity gains with further potential benefits to economic growth. This study examines the productivity and resource misallocation in a sample of countries in the Middle East and North Africa (MENA) region and Turkey. The analysis relies on data derived from the World Bank Enterprise Surveys over the period 2008-2016 of firms in Egypt, Turkey and Yemen. Furthermore, in the analysis we include various firm characteristics, and we explore major state-business relations (SBRs) and their association to resource misallocation. The results are mixed where in Egypt and Turkey female ownership and international quality are positively associated with productivity and allocation efficiency, while in all cases obstacles in SBRs present a negative and significant correlation with the firms’ performance and productivity, reducing the allocation efficiency and increasing the dispersions on output and capital.

Keywords: Firm Level Data, Productivity, Resource Misallocation, State-Business Relations, World Bank Enterprise Surveys

JEL Classification: D24, D61, D73, L25, O12, O43, O47

Suggested Citation

Giovanis, Eleftherios and Ozdamar, Oznur, Productivity and Resource Misallocation: Evidence From Firms in Middle East and North Africa (MENA) Region Countries (December 1, 2018). The Economic Research Forum (ERF) Working Paper No. 1266, 2018, Available at SSRN: https://ssrn.com/abstract=3411491 or http://dx.doi.org/10.2139/ssrn.3411491

Eleftherios Giovanis (Contact Author)

Manchester Metropolitan University-Business School, Department of Economics, Policy and International Business ( email )

Business School
All Saints Campus
Manchester, M15 6BH
United Kingdom

Aydin Adnan Menderes University, Nazilli Faculty of Economics and Administrative Sciences ( email )

Nazilli IIBF
Sumer Kampusu
Aydin, Nazilli 09800
Turkey

Oznur Ozdamar

Aydın Adnan Menderes University ( email )

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
6
Abstract Views
160
PlumX Metrics