Economic diversification in MENA oil exporters: Understanding the role of governance

Matallah, Siham

doi:10.1016/j.resourpol.2020.101602

Cited by 48 publications

(18 citation statements)

References 51 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This method is more efficient in dealing with short panels; where there is an asymptotic of large N and small T (which is the case in this study) (Blackburne & Frank, 2007). The significance of the two-step dynamic GMM model in dealing with endogeneity and heterogeneity issues has been well appreciated in studies on Dutch disease analysis (see (Apergis et al, 2014;Habiyaremye, 2016;Matallah, 2020)) albeit not on Dutch disease analysis of China-Africa trade on African countries. This study will fill an important gap in the literature as it sets to be the first study on the effect of China-Africa trade on African sectoral performance to employ dynamic (difference and system) Generalized Method of Moments (GMM) models.…”

Section: Discussionmentioning

confidence: 81%

Econometric Analysis of Dutch Disease Implication of China-Africa Trade

Oloko¹,

Ogunsiji²,

Adeleke³

2021

View full text Add to dashboard Cite

This study revisits the analysis of the Dutch disease implication of China-Africa trade for Africa’s non-mineral resources sectors; specifically, manufacturing and agricultural sectors, while focusing on the trade relationship between China and 27 African countries for the period of 19years, 2001 to 2019. This prompted an econometric analysis with the use of two-step dynamic (difference and system) panel Generalized Method of Moment (GMM) models, which was also complemented with dynamic least squares panel econometric regression. The preliminary analysis revealed that Ethiopia is the largest African trading partner with China, with an average of about 21percent China-Ethiopia trade ratio, while Botswana has the least trade relation with China, with 1.5percent Botswana-China trade ratio. The result of our econometric analyses suggests that higher China-Africa trade has the potential to reduce Africa’s manufacturing value-added. In other words, China-Africa trade is not causing Dutch disease in Africa but has the potential to cause Dutch disease in the future. Furthermore, the result suggests that higher China-Africa trade has the potential to increase Africa’s agricultural sector productivity. This implies that China-Africa trade has no tendency of causing Dutch disease in the agricultural sector. Our results are robust to different data structures for the dynamic GMM model.

show abstract

Section: Discussionmentioning

confidence: 81%

Econometric Analysis of Dutch Disease Implication of China-Africa Trade

Oloko¹,

Ogunsiji²,

Adeleke³

2021

View full text Add to dashboard Cite

show abstract

“…However, dependence on the resources is not providing a sustainable growth model over the time horizon. Hence, the literature discusses the adaption of policies to circumvent the dependence problem for oil producer MENA countries (Bhattacharyya and Blake, 2010;Belaid et al, 2021;Matallah, 2020). At this point, producing and exporting relatively more sophisticated products stand out as a remedy for sustainable growth.…”

Section: Empirical Findingsmentioning

confidence: 99%

Export Sophistication and Its Impact on Growth: Case Study for Mena Countries

Aslanoğlu

Erdoğan

Deniz

2021

Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi

View full text Add to dashboard Cite

This study initially calculates export sophistication of Middle East and North Africa (MENA) countries to make a comparison in the region and in between OPEC and non-OPEC countries for 2004-2016 period. Secondly, short and long run empirical analysis are applied to examine the effect of export sophistication on GDP per capita growth controlling for several macroeconomic variables. Lastly, panel VAR is utilized to decompose the variation in growth rate. Empirical findings suggest positive effect of sophistication on growth rate controlling for oil prices and OPEC membership and export sophistication is observed to be the key variable to explain the variation in growth rate out of several candidate variables.

show abstract

“…These countries are expected to get higher welfare gains from international trade (i.e., exporting energybased products), reaching higher economic growth rates. Several countries (e.g., Bahrain, Brunei Darussalam, Kuwait, Qatar, and Saudi Arabia) have experienced a strong economic performance by exporting energy-based products since the 1970s (Matallah, 2020). These economies have also been classified as "high-income economies" (the World Bank's definition) due to their strong economic performance exporting energy-based products.…”

Section: Introductionmentioning

confidence: 99%

“…For instance, even Saudi Arabia announced an economic diversification program (Strategic Vision 2030) due to the rising energy prices and their effects on fiscal and financial uncertainty (Albassam, 2015). The economic aspect of this program targets to increase non-oil exporting to 50% of total exports by enhancing manufacturing equipment and ammunition (Matallah, 2020).…”

Section: Introductionmentioning

confidence: 99%