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Testing the productivity bias hypothesis in Middle East countries

Ferda Halicioglu (Department of Economics, Istanbul Medeniyet University, Istanbul, Turkey)
Natalya Ketenci (Department of Economics, Yeditepe Universitesi, Istanbul, Turkey)

Journal of Economic Studies

ISSN: 0144-3585

Article publication date: 8 October 2018

168

Abstract

Purpose

The purpose of this paper is to empirically test the validity of the productivity bias hypothesis (PBH) in 18 Middle East countries.

Design/methodology/approach

The paper employs autoregressive-distributed lag approach to cointegration approach and stability tests.

Findings

The empirical results suggest the existence of the PBH only in the case of Bahrain, Kuwait and Saudi Arabia.

Practical implications

Conclusions drawn from this research could be useful for the policy-makers of governments and practitioners in international trade organizations.

Originality/value

This study extends the existing literature by providing initial empirical time series evidence of the PBH for the entire Middle East countries.

Keywords

Acknowledgements

An earlier version of this paper was presented at the 16th International Conference of MEEA in Ankara in 2017. Without any implication, the authors would like to thank the editor of this journal for his very helpful suggestions and an anonymous referee for his/her attention and insight. The authors remain responsible for all errors. The authors of this paper have not made their research data set openly available. Any enquiries regarding the data set can be directed to the corresponding author.

Citation

Halicioglu, F. and Ketenci, N. (2018), "Testing the productivity bias hypothesis in Middle East countries", Journal of Economic Studies, Vol. 45 No. 5, pp. 922-931. https://doi.org/10.1108/JES-04-2017-0104

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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