Natural Resource Abundance, Growth, and Diversification in the Middle East and North Africa : The Effects of Natural Resources and the Role of Policies.
Title:
Natural Resource Abundance, Growth, and Diversification in the Middle East and North Africa : The Effects of Natural Resources and the Role of Policies.
Author:
Diop, Ndiame.
ISBN:
9780821395929
Personal Author:
Physical Description:
1 online resource (185 pages)
Contents:
Half Title Page -- Title Page -- Copyright -- Contents -- Acknowledgments -- Contributors -- Chapter Abstracts -- Abbreviations -- Chapter 1 An Overview of Diversification in MENA: Rationale, Stylized Facts, and Policy Issues -- The Facts: MENA Economies' Low Level of Diversification -- Limited Diversification, Natural Resource Rents, and Growth Volatility -- Why Is Greater Diversification Desirable in MENA? -- The Role of Rents and Real Exchange Rates -- The Role of Weak Links in Output Concentration -- Fiscal Policy and Output Concentration -- Natural Resources and Incentives for Regional Trade Reforms -- Notes -- References -- Chapter 2 Resource Abundance and Growth: Benchmarking MENA with the Rest of the World -- Benchmarking MENA's Long-Term Growth and Volatility -- Correlates of MENA's Growth Performance -- Conclusion -- Annex 2A Trade, Structural Change, and Natural Resources -- Annex 2B Ten Observations on Successful Growth -- Annex 2C Applied Tariff Protection Is Still Relatively High -- Annex 2D Ad-Valorem Equivalents Estimations -- Notes -- References -- Chapter 3 Rents, Regulatory Restrictions, and Diversification toward Services in Resource-Rich MENA -- Services in MENA: Stylized Facts -- Relative Roles of Engel's Effects in Consumption and Rents -- The Role of Microeconomic Regulations -- Export Diversification Opportunities for Resource-Poor MENA -- Concluding Remarks -- Notes -- References -- Chapter 4 Patterns of Diversification in MENA: Explaining MENA's Specificity -- Empirical Methodology -- Measuring Weak Links and Dutch Disease Effects -- Data Description -- Empirical Results -- Concluding Remarks -- Notes -- References -- Chapter 5 Fiscal Policy and Diversification in MENA -- Role of Fiscal Policy in the Aftermath of the Arab Spring -- Fiscal Policy in MENA: Stylized Facts -- Fiscal Policy and Diversification.
The Behavior of Fiscal Policy in MENA: Econometric Evidence -- Concluding Remarks -- Notes -- References -- Chapter 6 Natural Resource Heterogeneity and the Incentives for and Impact of Regional Integration -- Trade Agreements in MENA: An Analytical Setup -- Empirical Results -- Concluding Remarks -- Notes -- References -- Appendix A Country Grouping Classifications -- Notes -- References -- Back Cover.
Abstract:
MENA is one of the richest regions in the world in terms of natural resources: it holds more than 60 percent of the world's proven oil reserves, mostly located in the Gulf region, and nearly half of gas reserves. Oil represents 80-85 percent of merchandise exports in the region, making it highly depending on fluctuations in international prices. A long strand of economic literature has suggested that such dependence may hurt a country's growth prospects and the scope for job creation by reducing economic diversification. This volume investigates the effect of natural resources and the role of policies on achieving higher and sustained growth through diversification away from oil. It explores analytical questions which include: (i) the impact of the real exchange rate on manufacturing and tradable services competitiveness in MENA; (ii) the role of fiscal policy in supporting diversification; (iii) how "weak links" (input sectors with low productivity) play a critical role in explaining the concentration of economic activities, in addition to the classical Dutch Disease effect and (iv) the impact of macroeconomic factors on the drive for regional integration Several policy recommendations emerge from this analysis: (i) policymakers should strive to avoid real exchange rate overvaluation through consistent fiscal policies, flexible exchange rates and adequate product and factor market regulations; (ii) reforms to improve the competition and efficiency of upstream input activities are crucial for improving the performance of downstream activities and diversification in MENA (iii) a consistent and transparent fiscal policy is essential to reduce instability, build the fiscal space needed to invest in core infrastructure and human capital and create a favorable environment for diversification; (iv) while regional trade integration is desirable for
political, social, cultural and economic reasons, in terms of trade liberalization, this is not the best option for resource-rich countries of the region. Policymakers should take this into account in discussing regional integration options. It is hoped that the findings of this work will be of interest to policymakers, the civil society, donors and practitioners in MENA countries and stimulate the debate of such an important topic.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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