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

Thibault Lemaire and Dina Ragab ()
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Dina Ragab: Université Paris 1 Panthéon - Sorbonne

No 1423, Working Papers from Economic Research Forum

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.

Pages: 34
Date: 2020-11-20, Revised 2020-11-20
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Published by The Economic Research Forum (ERF)

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