Band 10, Heft 1 -

This study estimates the impact of corruption on the revenue-generating capacity of different tax categories in the Middle East. This is done over a period preceding the Global Crisis and the Arab Spring, to avoid any biases brought about by these two far reaching events. We find that the low revenue collection as a share of GDP in the Middle East, compared to other middle-income regions is due in part to corruption, with certain taxes more affected than others. Taxes that require frequent interaction between the tax authority and individuals, such as taxes on international trade, seem to be more affected by corruption than most other types of taxation. This suggests that once political stability returns to the region, if governments need to raise more tax revenues in a way that minimizes distortions and maximizes social welfare, they should implement reforms that either reduce corruption or raise revenues from tax categories that are less susceptible to corruption. Possible reforms of the revenue system and administration are examined.

Egypt, Morocco and Tunisia face challenges competing on the global markets, as shown by their relatively low and stagnant export shares. The limited export competitiveness has hampered external demand, growth and employment. Applying, for the first time to North Africa, the stock-flow approach to the real equilibrium exchange rate, this paper evaluates the countries’ real exchange rate misalignments in the past three decades. While Egypt experienced periods of substantial misalignment, the exchange rates in Morocco and Tunisia have broadly reflected the underlying fundamentals. In all three countries, structural factors are key to boosting exports, alongside avoiding sizeable future misalignments. Intra-regional trade – with both North Africa and the rest of the continent – together with greater orientation to fast growing emerging markets could also raise countries’ external competitiveness.

The health target is still considered one of the most challenging goals for most Middle East and North African (MENA) Countries. Using Panel Least Square with Regional Dummies (LSDV) for 20 MENA countries over the period 2000–2009, the study concludes that with less than 5 years for the Millennium Development Goals (MDGs) to be concluded, a significant acceleration in economic growth is required for the MENA countries to achieve their goals on reducing the under-five infant mortality rates (UFMR) and the maternal mortality rates (MMR) if these countries depended solely on economic growth. As a policy implication, MENA governments need to concentrate on developing and improving many areas including social and physical infrastructure as well as legal and financial institutions.

This study investigates the effect of ownership structure and concentration on firm performance for 203 companies from five GCC countries (Qatar, Kuwait, Saudi Arabia, Bahrain and Oman), using a panel data analysis for the period 2000–2010. The study further examines the effects of financial leverage and risk. Our results indicate that ownership structure affects firm performance in GCC countries. Government ownership affects firm performance ROA while foreign and institutional ownership are found not to be significant. The results also show that ownership concentration affects firm performance positively and significantly. A firm’s capital structure has no effect on performance. Furthermore, the study concludes that age and size have a positive and significant impact on corporate performance.