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Power Sector Reforms and Technological Change: Evidence from Arab League Members

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  • Thibault Lemaire

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, Centre de recherche de la Banque de France - Banque de France)

  • Dina Ragab

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, Cairo University)

Abstract

Power sector reforms have been widely adopted in the turn of the 21st Century, including in the Middle East and North Africa. Have the promises that accompany such reforms led to technological change in the region? Adopting an instrumental variable approach and using an index of power sector reforms and aggregate macroeconomic data for 18 Arab League member states between 1982 and 2013, we provide robust evidence that there is a positive causal relationship between power sector reforms and technological change, proxied by high-tech exports, in Arab countries. While the literature has evidenced a relationship between such reforms and economic growth, our results suggest that technological change is a transmission channel of this relationship.

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  • Thibault Lemaire & Dina Ragab, 2020. "Power Sector Reforms and Technological Change: Evidence from Arab League Members," Working Papers hal-03948646, HAL.
    • Handle: RePEc:hal:wpaper:hal-03948646
    Note: View the original document on HAL open archive server: https://hal.science/hal-03948646v1
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