Productivity and Resource Misallocation: Empirical Findings from Firms in the Middle East and North Africa (MENA) Region and Turkey
State-Business relations (SBRs) are reflected in business and investment climate indicators and may take the form of formal, regular, and informal interactions. The creation of an institutional environment in which the state provides high-quality public goods, such as infrastructure, political stabi...
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| Format: | Article |
| Language: | English |
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Istanbul University Press
2022-01-01
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| Series: | İktisat Politikası Araştırmaları Dergisi |
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| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/7E1DC49AD1FE4588937E24099517802A |
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| author | Eleftherios Giovanis Öznur Özdamar Giovanis |
| author_facet | Eleftherios Giovanis Öznur Özdamar Giovanis |
| author_sort | Eleftherios Giovanis |
| collection | DOAJ |
| description | State-Business relations (SBRs) are reflected in business and investment climate indicators and may take the form of formal, regular, and informal interactions. The creation of an institutional environment in which the state provides high-quality public goods, such as infrastructure, political stability, elimination of corruption, and effective public administration, is important because it can improve productivity and lead to higher rates of growth. Resource reallocation from low to high productivity firms can generate large aggregate productivity gains with further potential benefits to economic growth. This study examines the relationship between productivity and resource misallocation in a sample of countries in the Middle East and North Africa (MENA) region, and Turkey. The analysis relies on data from the World Bank Enterprise Surveys over 2008-2016 of firms in Egypt, Turkey, and Yemen. In the analysis, we control various firm characteristics. Furthermore, we explore major state-business relations (SBRs) and their association to resource misallocation. The results are mixed, wherein in Egypt and Turkey, female ownership and international quality certification are positively associated with productivity and allocation efficiency. Moreover, obstacles in SBRs present a negative and significant correlation with the firms’ performance and productivity, increasing dispersions in the resource allocation, output, and capital. We find that corruption, political instability, electricity supply, and high tax rates are the most critical obstacles in SBRs. |
| format | Article |
| id | doaj-art-40468c18414e43cb8f8e3f18832e7c34 |
| institution | Kabale University |
| issn | 2148-3876 |
| language | English |
| publishDate | 2022-01-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | İktisat Politikası Araştırmaları Dergisi |
| spelling | doaj-art-40468c18414e43cb8f8e3f18832e7c342025-08-20T03:52:48ZengIstanbul University Pressİktisat Politikası Araştırmaları Dergisi2148-38762022-01-019113710.26650/JEPR1021400123456Productivity and Resource Misallocation: Empirical Findings from Firms in the Middle East and North Africa (MENA) Region and TurkeyEleftherios Giovanis0https://orcid.org/0000-0002-7492-7461Öznur Özdamar Giovanis1https://orcid.org/0000-0002-2188-3733İzmir Bakırçay Üniversitesi, Izmir, Turkiyeİzmir Bakırçay Üniversitesi, Izmir, TurkiyeState-Business relations (SBRs) are reflected in business and investment climate indicators and may take the form of formal, regular, and informal interactions. The creation of an institutional environment in which the state provides high-quality public goods, such as infrastructure, political stability, elimination of corruption, and effective public administration, is important because it can improve productivity and lead to higher rates of growth. Resource reallocation from low to high productivity firms can generate large aggregate productivity gains with further potential benefits to economic growth. This study examines the relationship between productivity and resource misallocation in a sample of countries in the Middle East and North Africa (MENA) region, and Turkey. The analysis relies on data from the World Bank Enterprise Surveys over 2008-2016 of firms in Egypt, Turkey, and Yemen. In the analysis, we control various firm characteristics. Furthermore, we explore major state-business relations (SBRs) and their association to resource misallocation. The results are mixed, wherein in Egypt and Turkey, female ownership and international quality certification are positively associated with productivity and allocation efficiency. Moreover, obstacles in SBRs present a negative and significant correlation with the firms’ performance and productivity, increasing dispersions in the resource allocation, output, and capital. We find that corruption, political instability, electricity supply, and high tax rates are the most critical obstacles in SBRs.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/7E1DC49AD1FE4588937E24099517802Afirm-level datafirm characteristicproductivityresource misallocationstate-business relations |
| spellingShingle | Eleftherios Giovanis Öznur Özdamar Giovanis Productivity and Resource Misallocation: Empirical Findings from Firms in the Middle East and North Africa (MENA) Region and Turkey İktisat Politikası Araştırmaları Dergisi firm-level data firm characteristic productivity resource misallocation state-business relations |
| title | Productivity and Resource Misallocation: Empirical Findings from Firms in the Middle East and North Africa (MENA) Region and Turkey |
| title_full | Productivity and Resource Misallocation: Empirical Findings from Firms in the Middle East and North Africa (MENA) Region and Turkey |
| title_fullStr | Productivity and Resource Misallocation: Empirical Findings from Firms in the Middle East and North Africa (MENA) Region and Turkey |
| title_full_unstemmed | Productivity and Resource Misallocation: Empirical Findings from Firms in the Middle East and North Africa (MENA) Region and Turkey |
| title_short | Productivity and Resource Misallocation: Empirical Findings from Firms in the Middle East and North Africa (MENA) Region and Turkey |
| title_sort | productivity and resource misallocation empirical findings from firms in the middle east and north africa mena region and turkey |
| topic | firm-level data firm characteristic productivity resource misallocation state-business relations |
| url | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/7E1DC49AD1FE4588937E24099517802A |
| work_keys_str_mv | AT eleftheriosgiovanis productivityandresourcemisallocationempiricalfindingsfromfirmsinthemiddleeastandnorthafricamenaregionandturkey AT oznurozdamargiovanis productivityandresourcemisallocationempiricalfindingsfromfirmsinthemiddleeastandnorthafricamenaregionandturkey |