CAN MARKET CONTESTABILITY RELIEVE ECONOMIC STRESS IN ARAB SPRING COUNTRIES

Loading...
Thumbnail Image

Date

2012-07

Journal Title

Journal ISSN

Volume Title

Type

Article

Publisher

Research Science Press

Series Info

Journal of International Business & Finance;Vol. 4, No. 2, (2012): 83-91

Doi

Scientific Journal Rankings

Abstract

This study examines the effects of overall contestability OCI on economic growth in some Arab countries. The econometric methodology follows the cross-country studies with empirical application to a panel of 4 Arab Spring countries observed over the period 1995 to 2011. Panel regressions are carried out using the fixed-effects model. The aim is to provide an empirical evidence for the driving forces of Arab Springrevolutions. The results show that overall contestability is significantly and negatively related to GDP percapita. By testing the relation between overall contestability and principal economic stress variables, inflation provided significant negative relation but unemployment did not. Adding Granger causality tests showed that: first a unidirectional relationship between GDP per capita and inflation, and second a unidirectional relation between each ofinflation and unemployment on one hand and OCI on the other hand.

Description

MSA GOOGLE SCHOLAR

Keywords

October University for university of overall contestability, growth, economic stress, Arab countries, causality

Citation

Baumol, W. J. , J. C. Panzar, and R. D. Willig (1982), Contestable Markets and the Theory ofIndustrial Structure. New York, Harcourt-Brace, Jovanovich, Inc. Baumol, William and KyuSik Lee. (1991), Contestable Markets, Trade and Development, World Bank Research Observer, Vol. 6, No. 1., p. 2. Bikker J., Spierdijk J. and Finniec P. (2007), The Impact of Market Structure, Contestability and Institutional Environment on Banking Competition. Tjalling C. Koopmans Research Institute. Discussion Paper Series 07-29. Engle R. F. and Granger, C. W. J. (1987), Co-integration and Error Correction: Representation, Estimation, and Testing”. Econometrica, 55, pp. 251-76. Index of Economic Freedom (2011), The Heritage Foundation and Wall Street Journal, Dow Jones & Company, Inc. Available at: http://www. heritage. org/ Mahboub, A. and Salman, D. (2007), ICT, Market Contestability and Economic Performance: Lessons from ERF Countries. 14th Annual Conference: 28th - 30th December 2007 Cairo, Egypt. Shepherd, William G. (1984), Contestability’ vs. Competition. American Economic Review 74, pp. 572-87. Steve, H. (2012), Economic Indicators for the Arab Spring. Retrieved 2012 Available at: from http://asithappens. spaces. wooster. edu/economic-indicators-for-the-arab- spring. Ap