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An Estimation of Service Sectors Restrictiveness in The MENA Region


  • Novella Bottini

    () (Cattaneo University –LIUC)

  • Mohamed Ali Marouani


This paper aims at assessing barriers to service provision in the banking, telecom (fixed and mobile), insurance and transport (air and maritime) sectors of four MENA countries, by including both trade and domestic restrictions. The qualitative information gathered is the basis of the computation of sectoral aggregate and modal trade restrictiveness indexes (TRIs). These TRIs, already computed in the previous chapter, are used as regressors of firms’ economic performance indicators to capture the economic impact of restrictions. The estimated coefficients of the TRIs are then used to compute the aggregate and modal tax equivalents of service restrictions by sector. The results show that service restrictions have an impact on economic performance in the three studied sectors. While a rent-creating effect seems to dominate restrictions on banking and fixed telecom sectors, a cost-inefficiency effect seems to dominate the mobile telecom sector. Moreover, interactions between modal restrictions seem to be taking place, especially in the telecom sectors. Finally, higher levels of tax equivalents in the insurance and transport sectors characterize MENA countries in comparison to OECD countries.

Suggested Citation

  • Novella Bottini & Mohamed Ali Marouani, 2009. "An Estimation of Service Sectors Restrictiveness in The MENA Region," Working Papers 489, Economic Research Forum, revised May 2009.
  • Handle: RePEc:erg:wpaper:489

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    References listed on IDEAS

    1. Brock, Philip L. & Rojas Suarez, Liliana, 2000. "Understanding the behavior of bank spreads in Latin America," Journal of Development Economics, Elsevier, vol. 63(1), pages 113-134, October.
    2. Betancourt, Roger R & Gautschi, David A, 1993. "The Outputs of Retail Activities: Concepts, Measurement and Evidence from U.S. Census Data," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 294-301, May.
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    4. Mohamed Ali Marouani & Laura Munro, 2009. "Assessing Barriers to Trade in Services in The MENA Region," Working Papers 496, Economic Research Forum, revised Jul 2009.
    5. Philip TURNER, 2007. "Are Banking Systems in East Asia Stronger?," Asian Economic Policy Review, Japan Center for Economic Research, vol. 2(1), pages 75-95.
    6. Nora Dihel & Ben Shepherd, 2007. "Modal Estimates of Services Barriers," OECD Trade Policy Papers 51, OECD Publishing.
    7. Brons, Martijn & Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2002. "Price elasticities of demand for passenger air travel: a meta-analysis," Journal of Air Transport Management, Elsevier, vol. 8(3), pages 165-175.
    8. Saunders, Anthony & Schumacher, Liliana, 2000. "The determinants of bank interest rate margins: an international study," Journal of International Money and Finance, Elsevier, vol. 19(6), pages 813-832, December.
    9. Konan, Denise Eby & Maskus, Keith E., 2006. "Quantifying the impact of services liberalization in a developing country," Journal of Development Economics, Elsevier, vol. 81(1), pages 142-162, October.
    10. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    11. Ho, Thomas S. Y. & Saunders, Anthony, 1981. "The Determinants of Bank Interest Margins: Theory and Empirical Evidence," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 16(04), pages 581-600, November.
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    Cited by:

    1. Mohamed Ali Marouani & Laura Munro, 2009. "Assessing Barriers to Trade in Services in the MENA Region," OECD Trade Policy Papers 84, OECD Publishing.
    2. Noha S. Omar & Khalid Sekkat, 2012. "Egypt Airline Passengers Market: Competition and Performance," Working Papers 669, Economic Research Forum, revised 2012.
    3. Brahim Morchid & Khalid Sekkat, 2012. "Moroccan Passenger Airlines Framework and Performance," Working Papers 725, Economic Research Forum, revised 2012.
    4. Riham Ahmed Ezzat & Nora Aboushady, 2015. "Do Telecom Restrictive Policies Matter for Telecom Performance? Evidence from MENA Countries," Working Papers 949, Economic Research Forum, revised Sep 2015.

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