Financial Development and Employment: New Evidence

Rym Ayadi, Sami Ben Naceur, Mohamed Goaied
20/05/2019

This paper adds to the existing literature on finance and growth, by exploring the effect of finance on the labour market, using data on 143 countries from 1995 to 2015. We also examine whether the impact of financial development on labour is significantly different prior to and after the 2008 global financial crisis. This paper has five main findings: first, the analysis confirms the positive relationship between the efficiency of and access to financial institutions and the employment rate in the linear specification; second, the marginal returns to employment from further financial institution inclusion diminish at high levels of inclusion and turn negative when a certain threshold is reached; third, the effects of financial market access on employment create a U-shaped relationship, where financial market access begins  impacting on employment when a threshold of access is reached; fourth, the positive effect of financial development on employment strengthens with the country’s institutional quality; finally, there is strong support for financial development having a negative impact on employment during the 2008 global financial crisis.

DESCRIPTIVE ANALYSIS OF THE ENTREPRENEURSHIP ECOSYSTEM IN EGYPT FROM A START-UP PERSPECTIVE: CHALLENGES AND OPPORTUNITIES

Heba Zaki, Nahed Zeini
17/04/2019

The purpose of this paper is to present a descriptive analysis of start-ups in Egypt and the related ecosystem, relying on a unique survey. This is the first survey that aims to provide useful and insightful data specifically about Egyptian start-ups. The study aims to explore success factors, opportunities and challenges that they face. This, in turn, has led us to suggesting recommendations for policy makers that may encourage this significant socio-economic segment to become a steering wheel in economic growth.

INNOVATIVE NASCENT AND EARLY STAGE ENTREPRENEURSHIP IN THE SOUTHERN MEDITERRANEAN – EVIDENCE ON JORDAN AND MOROCCO

Serena Sandri, Nooh Ashyab, Elyas Azzioui
16/04/2019

Innovative entrepreneurship is typically classified as high growth entrepreneurship, as innovation is, in many cases, behind a venture’s success and represents the key to expansion and job creation. As such, it is considered to be an engine for economic growth and development. This study builds on the result of in-depth interviews conducted over a sample of 72 innovative nascent and early stage entrepreneurs in Jordan and Morocco and, herewith, provides an overview of the main characteristics of innovative startups and young ventures in these two countries. This provides useful insights into entrepreneurial traits, the challenges and potential strengths of startups in the region. The specific focus of the study is to try to understand the skills profile of innovative nascent and young entrepreneurs in the region and to test compelling theories into the origins of skills. It is, in particular, focused on the investment and endowment hypotheses. The results point to the importance of balanced skills and provide support for the endowment hypothesis.

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