State Business Relations and The Dynamics of Job Flows in Egypt and Turkey
The Economic Research Forum (ERF) Working Paper No. 1271, 2018
37 Pages Posted: 3 Jul 2019
Date Written: December 1, 2018
This study is motivated by the ongoing interest of policy makers in the possible sources of job creation and destruction. The aim is to explore the dynamics of job creation, destruction and net job creation rates in Egypt and Turkey, including various firm characteristics, besides the firm size and age that have not been studied so far, such as the business-state relations (SBRs), whether the firm has been accredited with an international qualification of quality assurance and control and whether one of the owners is female. The analysis relies on firm level data derived from the World Bank Enterprise Surveys. We implement weighted ordinary least squares (OLS). The findings show constraints to finance and political instability are the main obstacles of SBRs in both countries, including also tax rates and constraints in electricity. The quality of SBRs is found to be positively associated to job growth.
Keywords: Business Environment, Firm Level Data, Firm Growth, Job Creation, State- Business Relations
JEL Classification: D73, L5, L25, O12, O43
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