Recoveries in the Middle East, North Africa, and Pakistan: have macroeconomic policies been effective?

Dalia S. Hakura and Francesco Grigoli ()

Middle East Development Journal, 2014, vol. 6, issue 1, 45-65

Abstract: This paper identifies and documents the properties of output gap recessions and recoveries in the Middle East, North Africa, and Pakistan (MENAP) during the 1980 to 2008 period. It goes on to investigate the key determinants of the recoveries. The duration of MENAP countries' recessions and recoveries has increased from the 1990s to the 2000s. MENAP hydrocarbon exporting countries' recessions were on average more pronounced in the 2000s, and hydrocarbon importing countries' recessions milder. Fiscal policy is found to have played a key role during the recoveries to potential output, although with weaker effects for MENAP countries that are more open to trade. Monetary policy is found to have been less effective. This is likely to be related to the fact that many of the MENAP countries have fixed exchange rate regimes and hence have limited room for active monetary policy. At the same time, however, countries that experienced a depreciation of the real effective exchange rate (REER) or had undervalued REERs tended to recover faster.

Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/17938120.2014.885485 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Recoveries in the Middle East, North Africa, and Pakistan: Have Macroeconomic Policies Been Effective? (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rmdjxx:v:6:y:2014:i:1:p:45-65

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rmdj20

DOI: 10.1080/17938120.2014.885485

Access Statistics for this article

Middle East Development Journal is currently edited by Raimundo Soto

More articles in Middle East Development Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().