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This paper shows that firms in the Middle East and North Africa (MENA) provide training to their workers less frequently than firms in other regions and yet seem to be more in need of it. Utilizing firm level data from the Enterprise Surveys for over 100 countries, it attempts to explain that paradox and also identify alternative policy actions that MENA countries might use to substantially increase firm-supplied training by MENA firms. In particular, it points to the potential usefulness of reforms of labor regulations in MENA countries to be less rigid, but also coupling this with stronger enforcement so as to encourage existing firms to be more formal and new firms to enter, grow in size and adopt characteristics more favorable to training over time.

Using a sample of 321 textile and clothing companies for the years 1992 to 2010, this paper analyses the effect of quota phase-outs on firm-level efficiency in Pakistan following the end of the Multi-Fibre Arrangement (MFA). It highlights sectoral heterogeneity within the manufacturing industry as a result of MFA expiration. The empirical methodology uses the structural techniques proposed by Olley and Pakes (1996), and Levinsohn and Petrin (2003) in order to take care of endogeneity in the estimation of production functions. The results differ for the two industries: MFA expiration lead to an increase in the average productivity of textile producing firms but a significant reduction in the mean productivity of clothing producers. We offer a number of explanations for this outcome, such as a change in the input and product mix, entry by non-exporters in the clothing sector, and sectoral differences in quality ladders. A number of crucial policy lessons can be drawn from the findings of this study. JEL Classification:F13; F14; D24; C14; O19 Keywords: Multi-Fibre Arrangement, Trade Liberalisation, Productivity, Firm Heterogeneity, Simultaneity and Production Functions, Endogeneity of Protection

This paper uses a panel vector autoregressive model to study the differential effects of components of private debt on income growth for a large panel of countries. While household debt growth in a given period generally has a positive impact on income, this effect is much stronger for countries with relatively lower levels of income and household debt-to-GDP ratios. On the other hand, the responsiveness of income growth to an increase in corporate debt varies across countries, with a consistently negative impact in richer and/or more heavily indebted countries. A simple extension of our framework suggests the roles of investment and consumption spending in explaining the varying effects of household and corporate debt on growth. We carry out several exercises to illustrate the robustness of our results.