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Job Creation through Infrastructure Investment in the Middle East and North Africa

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  • Ianchovichina, Elena
  • Estache, Antonio
  • Foucart, Renaud
  • Garsous, Grégoire
  • Yepes, Tito

Abstract

To meet its infrastructure needs, the Middle East needs to invest, on average, around 6% of its GDP annually, although with differences across countries. This could lead to direct job creation of about 2.5 million direct, indirect and induced infrastructure-related jobs. Because of significant differences in financing opportunities, fiscal constraints could be binding for the poorest countries. The effectiveness of job creation from infrastructure will depend on the quality of targeting and on cost subsidies as well as on the effectiveness of (re)training programs. Managing unrealistic expectations will also matter as infrastructure jobs will help but will not solve the region’s employment challenge.

Suggested Citation

  • Ianchovichina, Elena & Estache, Antonio & Foucart, Renaud & Garsous, Grégoire & Yepes, Tito, 2013. "Job Creation through Infrastructure Investment in the Middle East and North Africa," World Development, Elsevier, vol. 45(C), pages 209-222.
    • Handle: RePEc:eee:wdevel:v:45:y:2013:i:c:p:209-222
    DOI: 10.1016/j.worlddev.2012.11.014
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    10. Daniel Camos-Daurella & Antonio Estache & Mohamad M. Hamid, 2017. "Quasi-fiscal Deficits in the Electricity Sector of the Middle East and North Africa: Sources and Size," Working Papers ECARES ECARES 2017-47, ULB -- Universite Libre de Bruxelles.
    11. Shahid Yusuf, 2014. "Middle East Transitions: A Long, Hard Road," IMF Working Papers 2014/135, International Monetary Fund.
    12. Camos, Daniel & Estache, Antonio & Hamid, Mohamad M., 2024. "The macroeconomic costs of energy policies: Quasi-fiscal deficit in the Middle East and North Africa," Energy Economics, Elsevier, vol. 133(C).
    13. Jordan Z Schwartz & Fernanda Ruiz-Nuñez & Jeff Chelsky, 2014. "Closing the Infrastructure Finance Gap: Addressing Risk," RBA Annual Conference Volume (Discontinued), in: Alexandra Heath & Matthew Read (ed.),Financial Flows and Infrastructure Financing, Reserve Bank of Australia.
    14. Ram, Manish & Aghahosseini, Arman & Breyer, Christian, 2020. "Job creation during the global energy transition towards 100% renewable power system by 2050," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    15. Onesmus Mbaabu Mutiiria & Qingjiang Ju & Koffi Dumor, 2020. "Infrastructure and inclusive growth in sub-Saharan Africa: An empirical analysis," Progress in Development Studies, , vol. 20(3), pages 187-207, July.

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