Privileges Instead of Jobs: Political Connections and Private Sector Growth in MENA

Schiffbauer, Marc; Sy, Abdoulaye; Hussain, Sahar Sajjad; Sahnoun, Hania; Keefer, Philip; Diwan, Ishac; Rijkers, Bob

doi:10.1596/978-1-4648-0405-2_ch4

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2022

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“…Furthermore, SOEs frequently provide goods and services to downstream markets and purchase inputs from upstream markets, affecting the whole value chain of the sectors in which they operate (Arezki et al, 2019). Similarly, privileges to politically connected firms in the MENA region can result in policy distortions -which can come in the form of subsidies or trade protection (Schiffbauer et al, 2014). Our paper shows that this can also reduce the incentives to invest in innovation.…”

Section: Introductionmentioning

confidence: 86%

Trade and Innovation in MENA

Ficarra¹,

Gökten²,

Harasztosi³

et al. 2022

Policy Research Working Papers

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Section: Introductionmentioning

confidence: 86%