State Business Relations and the Dynamics of Job Flows in Egypt and Turkey - Economic Research Forum (ERF)

State Business Relations and the Dynamics of Job Flows in Egypt and Turkey

Eleftherios Giovanis and Oznur Ozdamar

December, 2018


32 pages

L5. Regulation and Industrial Policy
L2. Firm Objectives, Organization, and Behavior
D7. Analysis of Collective Decision-Making
O4. Economic Growth and Aggregate Productivity
O1. Economic Development

This study is motivated by the ongoing interest of policy makers in the possible sources of job creation and destruction. The aim is to explore the dynamics of job creation, destruction and net job creation rates in Egypt and Turkey, including various firm characteristics, besides the firm size and age that have not been studied so far, such as the business-state relations (SBRs), whether the firm has been accredited with an international qualification of quality assurance and control and whether one of the owners is female. The analysis relies on firm-level data derived from the World Bank Enterprise Surveys. We implement weighted ordinary least squares (OLS). The findings show constraints to finance and political instability are the main obstacles of SBRs in both countries, including also tax rates and constraints in electricity. The quality of SBRs is found to be positively associated to job growth.


الدافع وراء هذه الدراسة هو الاهتمام المستمر لصانعي السياسات بالمصادر المحتملة لخلق الوظائف أو لتدميرها،  وذلك بهدف استكشاف ديناميكيات خلق فرص العمل أو تدميرها ، والتعرف على معدلات خلق صافي فرص العمل في كل من مصر وتركيا ، بما في ذلك خصائص الشركات المختلفة ، إلى جانب حجمها وعمرها وهى أمور لم تتم دراستها حتى الآن ، وتشمل  العلاقات بين شركات الأعمال التجارية والدولة سواء كانت الشركة حاصلة على اعتماد دولي لضمان  ومراقبة الجودة وما إذا كان من بين المالكين إناث. ويعتمد التحليل على بيانات على مستوى الشركات مستمدة من مسوح البنك الدولي للشركات.  بتنفيذ المربعات الصغرى العادية المرجحة ، نجد أن النتائج تبين أن  وجود قيود على التمويل وغياب الاستقرار السياسي يمثلان العقبات الرئيسية التي تواجهها هذه المؤسسات في البلدين ، بما في ذلك معدلات الضرائب والقيود المفروضة على الكهرباء. كما ظهر أن جودة  العلاقات بين الأعمال التجارية والدولة  مرتبطة بشكل إيجابي  بنمو الوظائف


Eleftherios Giovanis

University of Thessaly


Oznur Ozdamar

Adnan Menderes University



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