The purpose of this paper is to attempt to highlight some issues in the development process of the economic and social commission for Western Asia (ESCWA) countries. The question…
Abstract
Purpose
The purpose of this paper is to attempt to highlight some issues in the development process of the economic and social commission for Western Asia (ESCWA) countries. The question that may arise here is whether these countries can translate the different policies of trade as well as their potential and comparative advantage and their internal policies, into something more robust and helpful to promote growth and development.
Design/methodology/approach
The paper describes the role of foreign direct investment, gross capital formation, manufacturing and agriculture value added, and assesses their impact on the economy in the ESCWA countries.
Findings
If foreign direct investment and capital formation are essential components to growth and development, their role cannot be fully persistent if not purposeful. Also the economic structure of these developing economies show some reluctance to growth and development, a fact that promotes clarifying the process of shifting from primary to industrial sectors in order to promote growth and development.
Originality/value
Using a regression analysis of the factors that can promote growth, the findings of this study highlight the importance of liberalization and openness to outside countries in order to have faster growth, improve the productivity and the (GDP)/per capita in the different sectors of the economies of the ESCWA region.
Details
Keywords
This research paper aims to examine the Dutch disease syndrome in the more diversified economies of the Economic and Social Commission of Western Asia (ESCWA).
Abstract
Purpose
This research paper aims to examine the Dutch disease syndrome in the more diversified economies of the Economic and Social Commission of Western Asia (ESCWA).
Design/methodology/approach
An econometric model was applied to observe the impact of this syndrome on the different sectors of the economy. A regression analysis examined the relationship between this inflow of capital and lagging sector of these economies. Similarly, Granger‐causality was applied to determine the direction of causality between the variables.
Findings
Results indicate that worker remittances, foreign grants, and oil revenues are the main factors behind the Dutch syndrome in the ESCWA region. Channeling remittances through investments, subsidizing output of lagging sectors, and imposing higher import tariffs are recommended to reduce the negative externalities of the Dutch disease.
Research limitations/implications
It is to be noted that the paper has some limitations since data/statistics for the ESCWA region may not be totally reliable.
Originality/value
The paper sheds some light on the impact of this syndrome in the developing economies of Western Asia.