Doing Business and Imperfections in the Development of Knowledge Economy in the Arab Countries

Doing Business and Imperfections in the Development of Knowledge Economy in the Arab Countries

Ahmed Driouchi (Al Akhawayn University, Morocco)
Copyright: © 2014 |Pages: 29
DOI: 10.4018/978-1-4666-5210-1.ch014


As underlined in the previous chapter, rents may reduce the capacity of Arab economies to accelerate its adoption of knowledge economy. Major imperfections in these economies at the levels of markets, governance, and enterprises are discussed in this chapter. The limited business and enterprise creation in relation to the high unemployment of skilled labor are among the issues analyzed and discussed. As the prevailing political, macroeconomic, and business components are inter-related, imperfections are identified in almost all areas of the Arab economies. The chapter shows clearly that shifts to further knowledge economic and social policies are needed.
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1. What Can Be Learned From Doing Business By Arab Economies?

The way of doing business and mainly the starting of a business provides important indications about how enterprises are created. It seems that the context of Arab countries shows the prevalence of more public businesses and government related transactions in comparison with that of private businesses. As the growth of the number of enterprises indicates how market economy is promoted, it also indicates how private initiatives lead to enterprise creation.

This chapter uses the data from the World Bank databases with the objective of showing the major trends characterizing the initiation of businesses in Arab economies at the level of countries and globally with comparisons with Eastern European Economies (EEE). The major characteristics as well as the comparisons are important means to underline the existence of market incentives for the expansion of private initiatives in individual countries and for the overall economy of the Arab World.

The chapter is composed of a literature review and a section based on data analysis. This latter is used to discuss the trends taking place in Arab economies.

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