How interest groups shape industrial policy: the case of MENA countries

How can we explain the varying levels of diversification-oriented industrialization in the Middle East and North Africa (MENA) in spite of the seemingly many similarities among countries of the region such as regime type, resource abundance, geography, history, culture, etc.? This doctoral dissertat...

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Main Author: Kurdli, Susan Nashra
Other Authors: -
Format: Thesis-Doctor of Philosophy
Language:English
Published: Nanyang Technological University 2023
Subjects:
Online Access:https://hdl.handle.net/10356/170473
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author Kurdli, Susan Nashra
author2 -
author_facet -
Kurdli, Susan Nashra
author_sort Kurdli, Susan Nashra
collection NTU
description How can we explain the varying levels of diversification-oriented industrialization in the Middle East and North Africa (MENA) in spite of the seemingly many similarities among countries of the region such as regime type, resource abundance, geography, history, culture, etc.? This doctoral dissertation argues that domestic political structures in resource-abundant countries play a crucial role in whether the country utilizes its natural-resource revenue for instant public consumption or for long-term investment. This research finds that states with the presence of stronger interest groups lobbying for their preferences through formal and informal channels are more likely to allocate resource rents to industrial plans that expand economic growth. The effect of interest groups on industrial diversification is amplified when a leader has a long-term horizon. This is primarily because a leader who expects long tenure needs to maximize growth beyond the export of volatile and exhaustive natural resources. Diversification-oriented industrialization is one of the key means to ensuring a long-term source of growth. Otherwise, the leader would have not invested in industrial projects that do not yield immediate payoff. Instead, they would have spent resource rents on their own members in the form of distributive policies, such as transfers, and direct subsidies. By examining three MENA countries, Libya, the UAE and Saudi Arabia, this research demonstrates that, counter intuitively, strong interest groups in resource-rich countries result in higher levels of diversification-oriented industrialization.
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spelling ntu-10356/1704732023-10-03T09:52:45Z How interest groups shape industrial policy: the case of MENA countries Kurdli, Susan Nashra - S. Rajaratnam School of International Studies Su-Hyun Lee isshlee@ntu.edu.sg Social sciences::Political science How can we explain the varying levels of diversification-oriented industrialization in the Middle East and North Africa (MENA) in spite of the seemingly many similarities among countries of the region such as regime type, resource abundance, geography, history, culture, etc.? This doctoral dissertation argues that domestic political structures in resource-abundant countries play a crucial role in whether the country utilizes its natural-resource revenue for instant public consumption or for long-term investment. This research finds that states with the presence of stronger interest groups lobbying for their preferences through formal and informal channels are more likely to allocate resource rents to industrial plans that expand economic growth. The effect of interest groups on industrial diversification is amplified when a leader has a long-term horizon. This is primarily because a leader who expects long tenure needs to maximize growth beyond the export of volatile and exhaustive natural resources. Diversification-oriented industrialization is one of the key means to ensuring a long-term source of growth. Otherwise, the leader would have not invested in industrial projects that do not yield immediate payoff. Instead, they would have spent resource rents on their own members in the form of distributive policies, such as transfers, and direct subsidies. By examining three MENA countries, Libya, the UAE and Saudi Arabia, this research demonstrates that, counter intuitively, strong interest groups in resource-rich countries result in higher levels of diversification-oriented industrialization. Doctor of Philosophy 2023-09-14T23:57:26Z 2023-09-14T23:57:26Z 2023 Thesis-Doctor of Philosophy Kurdli, S. N. (2023). How interest groups shape industrial policy: the case of MENA countries. Doctoral thesis, Nanyang Technological University, Singapore. https://hdl.handle.net/10356/170473 https://hdl.handle.net/10356/170473 10.32657/10356/170473 en This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0). application/pdf Nanyang Technological University
spellingShingle Social sciences::Political science
Kurdli, Susan Nashra
How interest groups shape industrial policy: the case of MENA countries
title How interest groups shape industrial policy: the case of MENA countries
title_full How interest groups shape industrial policy: the case of MENA countries
title_fullStr How interest groups shape industrial policy: the case of MENA countries
title_full_unstemmed How interest groups shape industrial policy: the case of MENA countries
title_short How interest groups shape industrial policy: the case of MENA countries
title_sort how interest groups shape industrial policy the case of mena countries
topic Social sciences::Political science
url https://hdl.handle.net/10356/170473
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