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Locked out of development: insiders and outsiders in Arab capitalism

Hertog, Steffen ORCID: 0000-0002-6758-9564 (2023) Locked out of development: insiders and outsiders in Arab capitalism. Elements in the Politics of Development. Cambridge University Press, Cambridge, UK. ISBN 9781009045575

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Identification Number: 10.1017/9781009042444


This Element argues that the low dynamism of low- to mid-income Arab economies is explained with a set of inter-connected factors constituting a 'segmented market economy'. These include an over-committed and interventionist state with limited fiscal and institutional resources; deep insider-outsider divides among firms and workers that result from and reinforce wide-ranging state intervention; and an equilibrium of low skills and low productivity that results from and reinforces insider-outsider divides. These mutually reinforcing features undermine encompassing cooperation between state, business and labor. While some of these features are generic to developing countries, others are regionally specific, including the relative importance and historical ambition of the state in the economy and, closely related, the relative size and rigidity of the insider coalitions created through government intervention. Insiders and outsiders exist everywhere, but the divisions are particularly stark, immovable and consequential in the Arab world.

Item Type: Book
Official URL:
Additional Information: © 2022 The Author
Divisions: Government
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
Date Deposited: 03 Jan 2023 15:27
Last Modified: 15 Sep 2023 22:36

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