Knowledge-Based Economic Policy Development in the Arab World Ahmed Driouchi Al Akhawayn University, Morocco A volume in the Advances in Finance, Accounting, and Economics (AFAE) Book Series Managing Director: Lindsay Johnston Production Manager: Jennifer Yoder Development Editor: Austin DeMarco Acquisitions Editor: Kayla Wolfe Typesetter: Christina Henning Cover Design: Jason Mull Published in the United States of America by Business Science Reference (an imprint of IGI Global) 701 E. Chocolate Avenue Hershey PA 17033 Tel: 717-533-8845 Fax: 717-533-8661 E-mail: [email protected] Web site: http://www.igi-global.com Copyright © 2014 by IGI Global. All rights reserved. No part of this publication may be reproduced, stored or distributed in any form or by any means, electronic or mechanical, including photocopying, without written permission from the publisher. Product or company names used in this set are for identification purposes only. Inclusion of the names of the products or companies does not indicate a claim of ownership by IGI Global of the trademark or registered trademark. Library of Congress Cataloging-in-Publication Data Knowledge-based economic policy development in the Arab world / Ahmed Driouchi, editor. pages cm Includes bibliographical references and index. ISBN 978-1-4666-5210-1 (hardcover) -- ISBN 978-1-4666-5211-8 (ebook) -- ISBN 978-1-4666-5213-2 (print & perpetual access) 1. Knowledge economy--Arab countries. 2. Economic development projects--Arab countries. 3. Economic development--Arab countries. 4. Arab countries--Economic conditions. I. Driouchi, Ahmed, 1948- HD30.2.K63617 2014 338.9’2609174927--dc23 2013044806 This book is published in the IGI Global book series Advances in Finance, Accounting, and Economics (AFAE) (ISSN: 2327-5677; eISSN: 2327-5685) British Cataloguing in Publication Data A Cataloguing in Publication record for this book is available from the British Library. All work contributed to this book is new, previously-unpublished material. The views expressed in this book are those of the authors, but not necessarily of the publisher. This book is produced with the financial support of the European Union within the context of the FEMISE, Edited Volume Series. The contents of this book are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the European Union. For electronic access to this publication, please contact: [email protected]. Advances in Finance, Accounting, and Economics (AFAE) Book Series Ahmed Driouchi Al Akhawayn University, Morocco ISSN: 2327-5677 EISSN: 2327-5685 Mission In our changing economic and business environment, it is important to consider the financial changes occurring internationally as well as within individual organizations and business environments. 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Titles in this Series For a list of additional titles in this series, please visit: www.igi-global.com Knowledge-Based Economic Policy Development in the Arab World Ahmed Driouchi (Al Akhawayn University, Morocco) Business Science Reference • copyright 2014 • 355pp • H/C (ISBN: 9781466652101) • US $215.00 (our price) Labor and Health Economics in the Mediterranean Region Migration and Mobility of Medical Doctors Ahmed Driouchi (Al Akhawayn University, Morocco) Medical Information Science Reference • copyright 2014 • 358pp • H/C (ISBN: 9781466647237) • US $245.00 (our price) Economic Behavior, Game Theory, and Technology in Emerging Markets Bryan Christiansen (PryMarke, LLC, USA) and Muslum Basilgan (Uludağ University, Turkey) Business Science Reference • copyright 2014 • 462pp • H/C (ISBN: 9781466647459) • US $185.00 (our price) Global Strategies in Banking and Finance Hasan Dinçer (Beykent University, Turkey) and Ümit Hacioğlu (Beykent University, Turkey) Business Science Reference • copyright 2014 • 497pp • H/C (ISBN: 9781466646353) • US $225.00 (our price) Econometric Methods for Analyzing Economic Development Peter V. Schaeffer (West Virginia University, USA) and Eugene Kouassi (University of Cocody, Cote d’Ivoire) Business Science Reference • copyright 2014 • 339pp • H/C (ISBN: 9781466643291) • US $185.00 (our price) Technology and Financial Crisis Economical and Analytical Views Ali Serhan Koyuncugil (Capital Markets Board of Turkey, Turkey) and Nermin Ozgulbas (Baskent University, Turkey) Business Science Reference • copyright 2013 • 321pp • H/C (ISBN: 9781466630062) • US $185.00 (our price) Simulation in Computational Finance and Economics Tools and Emerging Applications Biliana Alexandrova-Kabadjova (Banco de Mexico, Mexico) Serafin Martinez-Jaramillo (Banco de Mexico, Mexico) Alma Lilia Garcia-Almanza (Banco de Mexico, Mexico) and Edward Tsang (University of Essex, UK) Business Science Reference • copyright 2013 • 378pp • H/C (ISBN: 9781466620117) • US $185.00 (our price) Information Systems for Global Financial Markets Emerging Developments and Effects Alexander Y. 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Chocolate Ave., Hershey, PA 17033 Order online at www.igi-global.com or call 717-533-8845 x100 To place a standing order for titles released in this series, contact: [email protected] Mon-Fri 8:00 am - 5:00 pm (est) or fax 24 hours a day 717-533-8661 Editorial Advisory Board Cristina Boboc, Bucharest University, Romania Mongi Boughzala, University Tunis Al Manar, Tunisia Abdelkader Djeflat, University of Lille, France Ahmed Ghonein, University of Cairo, Egypt Samir Makdisi, American University of Beirut, Lebanon Daniel Pele, Bucharest University, Romania Jean Louis Reffeirs, FEMISE, France & Institut de la Méditerranée, France Emilia Titan, Bucharest University, Romania List of Reviewers Amale Achehboune, Al Akhawayn University, Morocco Lamiaa Bargache, Al Akhawayn University, Morocco Ghita Bentouila, Al Akhawayn University, Morocco Hajar Bousfiha, Al Akhawayn University, Morocco Jan Guynes Clark, University of Texas – San Antonio, USA Hajar El Alouani, Al Akhawayn University, Morocco Fatim Zohra Filali, Al Akhawayn University, Morocco Alae Gamar, Al Akhawayn University, Morocco Molk Kadiri, Al Akhawayn University, Morocco Nisrine Oueriaghli, Al Akhawayn University, Morocco Nada Zouag, Al Akhawayn University, Morocco Table of Contents Foreword...............................................................................................................................................xv Preface.................................................................................................................................................xvii Acknowledgment...............................................................................................................................xxiii Section 1 Introduction and Methods Chapter 1 Knowledge.Economy.in.the.Arab.World:.Towards.New.Economic.Development.Policies...................1 Ahmed Driouchi, Al Akhawayn University, Morocco Chapter 2 Why.a.Benchmarking.with.EEE.Countries?..........................................................................................22 Cristina Boboc, Bucharest University of Economics, Romania Emilia Titan, Bucharest University of Economics, Romania Section 2 The Overall Characterization of Knowledge Economy in Arab and EEE Countries Chapter 3 School.Attainment,.Knowledge.Economy.in.Arab.Countries,.and.Comparisons.with.EEE Economies..............................................................................................................................................44 Ghita Bentouila, Al Akhawayn University, Morocco Alae Gamar, Al Akhawayn University, Morocco Chapter 4 The.Situation.of.Knowledge.Economy.in.the.Arab.and.EEE.Regions..................................................85 Daniel Pele, Bucharest University of Economics, Romania Chapter 5 Knowledge,.Local.Development,.and.Urbanization.in.Arab.Economies............................................104 Nada Zouag, Al Akhawayn University, Morocco Ahmed Driouchi, Al Akhawayn University, Morocco Chapter 6 How.Local.Development.is.Achieved.in.Relation.to.Knowledge.in.EEE.Countries..........................124 Cristina Boboc, Bucharest University of Economics, Romania Emilia Titan, Bucharest University of Economics, Romania Section 3 Production, Trade, and Employment Chapter 7 Production,.Trade,.Knowledge.Economy,.and.ICTs.in.Arab.Countries..............................................147 Nada Zouag, Al Akhawayn University, Morocco Amale Achehboune, Al Akhawayn University, Morocco Chapter 8 The.Oil.and.Gas.Sectors,.Renewable.Energy,.and.Environmental.Performance.in.the.Arab World....................................................................................................................................................172 Hajar El Alouani, Al Akhawayn University, Morocco Ahmed Driouchi, Al Akhawayn University, Morocco Chapter 9 Harnessing.Knowledge.for.Sustainable.Development:.Challenges.and.Opportunities.for.Arab. Countries..............................................................................................................................................229 Abdelkader Djeflat, Université de Lille 1, France Chapter 10 Intellectual.Property.Rights,.Innovation,.and.Knowledge.Economy.in.Arab.Countries.....................245 Nada Zouag, Al Akhawayn University, Morocco Molk Kadiri, Al Akhawayn University, Morocco Chapter 11 Unemployment.Persistence,.Risks.of.Skill.Obsolescence,.and.Impacts.on.the.Knowledge Economy.in.Arab.Countries.................................................................................................................273 Amale Acheboune, Al Akhawayn University, Morocco Ahmed Driouchi, Al Akhawayn University, Morocco Chapter 12 Education.Attainment.and.Feminization.of.Labor.Markets.in.Arab.Countries.with.Comparisons to.Eastern.and.Central.European.Countries.........................................................................................292 Fatima-Zohra Filali Adib, Al Akhawayn University, Morocco Amale Achehboune, Al Akhawayn University, Morocco Section 4 Economic and Social Policies for Harnessing Knowledge for Development of the Arab World Chapter 13 Rents.from.Natural.Resources.and.Relations.to.Knowledge.Economy.in.Arab.Countries.................313 Ahmed Driouchi, Al Akhawayn University, Morocco Chapter 14 Doing.Business.and.Imperfections.in.the.Development.of.Knowledge.Economy.in.the.Arab Countries..............................................................................................................................................335 Ahmed Driouchi, Al Akhawayn University, Morocco Chapter 15 Knowledge.Governance.and.Economic.Growth.in.Arab.Countries....................................................364 Antonio Rodriguez Andrès, Al Akhawayn University, Morocco Chapter 16 Policy.Outcomes.and.What.Can.be.Learned.by.Arab.Countries.from.EEE.Economies.....................394 Cristina Boboc, Bucharest University of Economics, Romania Emilia Titan, Bucharest University of Economics, Romania Compilation of References................................................................................................................411 About the Contributors.....................................................................................................................433 Index....................................................................................................................................................437 Detailed Table of Contents Foreword...............................................................................................................................................xv Preface.................................................................................................................................................xvii Acknowledgment...............................................................................................................................xxiii Section 1 Introduction and Methods Chapter 1 Knowledge.Economy.in.the.Arab.World:.Towards.New.Economic.Development.Policies...................1 Ahmed Driouchi, Al Akhawayn University, Morocco This.chapter.introduces.the.content.of.the.overall.book.and.its.relations.to.similar.publications.on.the. knowledge.economy.in.Arab.countries..It.is.composed.of.two.major.parts,.where.the.first.one.is.a.syn- thesis.of.the.publications.realized.up.to.2013.with.emphasis.on.the.major.economic.and.development. issues.facing.the.economies.of.the.Arab.world..The.second.part.introduces.the.rationale.of.the.book,.the. new.areas.investigated.besides.the.methods.used.and.the.expected.policy.outcomes..This.book.places.a. major.emphasis.on.the.need.to.accelerate.the.implementation.of.new.economic.and.social.policies.that. are.likely.to.be.enhancing.the.contributions.of.the.knowledge.economy.to.a.more.inclusive.economic. growth.and.development. Chapter 2 Why.a.Benchmarking.with.EEE.Countries?..........................................................................................22 Cristina Boboc, Bucharest University of Economics, Romania Emilia Titan, Bucharest University of Economics, Romania This.is.a.chapter.that.introduces.the.major.arguments.for.selecting.EEE.countries.for.comparisons.with. Arab.economies..The.focus.is.placed.on.the.neighborhood,.with.the.European.Union.and.the.similarities. related.to.the.transition.processes.experienced.by.EEE.countries.while.moving.form.centralized.and. administrated.to.open.and.market-driven.economies..The.series.of.international.collaborative.frameworks. developed.with.the.EU,.with.Arab.countries,.and.within.the.Mediterranean.region.are.also.among.the. reasons.behind.selecting.the.comparisons.between.Arab.and.EEE.economies. Section 2 The Overall Characterization of Knowledge Economy in Arab and EEE Countries Chapter 3 School.Attainment,.Knowledge.Economy.in.Arab.Countries,.and.Comparisons.with.EEE Economies..............................................................................................................................................44 Ghita Bentouila, Al Akhawayn University, Morocco Alae Gamar, Al Akhawayn University, Morocco The.most.important.avenues.emphasized.in.this.chapter.relate.to.the.progress.in.school.attainment.as.an. important.indicator.of.the.knowledge.position.of.a.country..The.descriptive.statistical.analyses.besides. other.assessments.are.devoted.to.show.the.pertinence.and.the.importance.of.education.attainment..Barro. and.Lee.1950-2010.data.are.used.in.this.chapter..The.opportunities.lost.with.the.low.level.of.school. attainment.are.introduced.and.discussed..The.relatively.slow.speed.of.recovery.in.schooling.is.already. expressed.by.the.lowest.knowledge.performances.achieved.between.the.economies.of.North.Africa,. Sudan,.Yemen,.and.the.Gulf.countries..In.addition,.the.description.has.shown.a.higher.attainment.in. schooling.of.EEE.economies.in.comparison.to.Arab.countries. Chapter 4 The.Situation.of.Knowledge.Economy.in.the.Arab.and.EEE.Regions..................................................85 Daniel Pele, Bucharest University of Economics, Romania This.chapter.introduces.different.knowledge.components.and.indices.and.attempts.to.show.their.impacts. on.different.economic.and.development.indicators.with.focus.on.EEE.and.Arab.economies..It.uses.mainly. descriptive.statistics.and.regression.analysis.to.globally.assess.these.performances..The.sets.of.data.used. for.EEE.show.already.the.data.limitations.faced.by.Arab.economies. Chapter 5 Knowledge,.Local.Development,.and.Urbanization.in.Arab.Economies............................................104 Nada Zouag, Al Akhawayn University, Morocco Ahmed Driouchi, Al Akhawayn University, Morocco In.the.absence.of.local.knowledge.measures,.this.chapter.looks.at.how.local.universities.and.research. centers.could.explain.the.potential.for.local.development.in.territorial.communities..This.chapter.also. assesses.the.links.between.urbanization.and.development..It.is.mainly.based.on.the.review.of.literature,. descriptive.statistics,.and.regression.analysis.using.data.on.local.development,.urbanization,.global. knowledge.measures,.and.human.development.indices..The.focus.here.is.on.Arab.economies..The.cur- rent.situation.and.development.prospects.are.discussed.in.relation.to.the.role.of.knowledge.economy. in.local.development.but.also.in.further.urbanization..Smart,.livable,.and.inclusive.cities.are.discussed. Chapter 6 How.Local.Development.is.Achieved.in.Relation.to.Knowledge.in.EEE.Countries..........................124 Cristina Boboc, Bucharest University of Economics, Romania Emilia Titan, Bucharest University of Economics, Romania Local.and.regional.development.is.an.increasingly.important.issue.for.researchers.and.politicians..The. challenge.of.enhancing.prosperity,.improving.wellbeing,.and.increasing.living.standards.has.become. acute.for.localities.and.regions.with.developing.economies..Moreover,.questions.about.the.implications.