Private Sector Job Creation in MENA: Prioritizing the Reform Agenda

Author/Editor:

Benedicte Baduel ; Carolin Geginat ; Gaelle Pierre

Publication Date:

September 27, 2019

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This paper examines the extent to which firms in selected MENA countries reported being constrained by the business environment around the time of the Arab Spring and the extent to which these constraints affected their employment performance. The results suggest that small firms in MENA faced more structural constraints than similar firms in other regions. We also find that MENA firms’ weaker job creation can be explained in great part by the macroeconomic environment and structural constraints. Low GDP growth, falling external competitiveness, corruption, lack of access to finance and poor access to electricity are found to explain a significant part of the lack of employment growth in MENA firms compared to their peers.

Series:

Working Paper No. 2019/206

Subject:

English

Publication Date:

September 27, 2019

ISBN/ISSN:

9781513512228/1018-5941

Stock No:

WPIEA2019206

Pages:

37

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