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FEMISE 2018/19 Internal Competition: Fourth and Last round in current Scientific programme

FEMISE is pleased to announce the launch of its fourth and final Internal Competition 2018/2019 within the current Scientific programme (2015-2019)



 Members of the FEMISE network who participated as affiliates of FEMISE in the European Commission Call (Access the list of these members) are invited to submit research proposals under the theme of:

Priorities of the EU-MED region

The deadline for the submission is on the 3rd of September 2018 (included-French date and time)

Winning proposals will meet the criteria of having a real value added (generating fresh knowledge), using rigorous and sound methodology, and having the potential of offering policy recommendations.

This fourth call for internal competition completes the research agenda for FEMISE for the four years Scientific Programme (2015-2019) by setting the Priorities of the EU-Med region.

Reminder: The first, was launched in 2015 and the selected proposals focused on modernisation in the countries in the south in the long run. The second, was launched in 2016 and the selected proposals focused on the navigating through the transition in the short run. The third round, was launched in 2017, and selected proposals focused on the Role of the EU in facilitating the transition of the South Med countries. A list of accepted proposals under the three rounds is given in the scientific program below to avoid repetition.

Details about the theme of the current Call for proposals, can be found in the link below:

in English, pdf

in French, pdf


Deadline for submissions of proposals: 3rd of September 2018

Tentative time plan:

Evaluation of proposals: 17 September 2018

Selection and Notification of acceptance: 21 September 2018

Signing Agreements for selected proposals: 24-26 September 2018

Submissions of first drafts: May 2019

Submission of final drafts at FEMISE conference: June 2019


 The dossier of the research proposals should include the following documents:

(1) The research proposal should not exceed 5 pages and should include the following:

  1. Summary (1/2 page)
  2. Statement of research stating the problem addressed, brief review of the literature and the knowledge gap the paper will fulfil.
  3. Conceptual Framework of the research analysis and how challenges are addressed
  4. Research Methodology stating the research question, the hypothesis to be tested, and the methodology that will be employed (e.g case studies, empirical evidence, etc.) and explain the rationale for using the selected methodology.
  5. Policy implications, how will the expected results of the paper contribute to the policy making.
  6. Time Frame, expected output (number of research reports produced), dissemination plan and division of labour in the consortium. Please note the duration for the projects in this call cannot exceed 10 months.

(2) The filled Application form 2018 (download here);

(3) The CVs of the members of the research consortium (standard forms can be downloaded here)

The dossier of the research proposal of the consortium can be sent to FEMISE bureau by email, fax or courier before: 3rd of September (included -French date and time)- More details in VIII. below

Any applications received after this date will not be considered.


(1) Only Affiliates members’ to the FEMISE-EU Contract on “Support to dialogues, political and economic research and studies of the Euro-Mediterranean Partnership” can be funded in this call (Please click here to download the list of those Affiliates to find out if your institute is eligible).

(2) All proposals have to be submitted in Consortiums as follows: at least one Affiliate member from the North AND one Affiliate member from the South.

Each consortium should have one Team Leader who will send the proposal on behalf of the consortium and will be responsible for the project (in terms of its executing, deliverables and admin process); he/she will be the contact person for all correspondence with FEMISE. Details of the legal representative who will be signing the agreement if the proposal is successful should also be provided in the application form. Proposals submitted with ONE member only will not be considered.

(3) Each researcher can only be involved in one funded project. In the case where a researcher is involved in several proposals, only the highest ranked proposal will be selected. The others (less well ranked) will be automatically eliminated.

V. Funding Scheme

The total budget envelope for all selected proposals in this fourth round of the internal competition will be approximate €64,000. Each consortium needs to specify in the application form provided the total amount requested for the honorarium of the team that will work on the project.

FEMISE will contribute a maximum of 80% of the final amount and the 20% amount will be considered as an “own contribution” from the consortium.

For example, if the approved budget for a selected proposal is Euros 8,000, FEMISE will contribute up to a maximum of Euros 6,400 towards this proposal and the remaining amount of Euros 1,600 will be considered as an “Own contribution” from the members of the consortium towards the project.

Teams are encouraged to produce more than one paper. The requested amount in the proposal needs to match the number of research papers produced and their quality, and will be part of the evaluation. The Selection committee reserves the right to modify the requested amount.

The funding through this call will ONLY cover the honorarium of the researchers (verified by Time sheets) that will be working on the selected proposals.


Following the initial screening for eligibility, proposals will go through the following evaluation process:

I. Evaluation: The FEMISE Evaluation Committee will perform the technical evaluation of the proposals, addressing the following criteria:

  1. Scientific quality of the proposal, in terms of:
  • Relevance of the topic to the economic policy issues of the Euro-Med Partnership
  • Value added of the proposed topic to the existing knowledge
  • The quality of the methodology and its ability to address the issue efficiently
  • Integration of the ‘policy oriented’ dimension and its relevance to South Med policy framework.
  1. Other evaluation criteria
  • Degree of cooperation between teams (North and South)
  • Geographic coverage (number of countries covered, coverage of countries poorly studied (e.g. Algeria, Jordan, Lebanon). Though comparative approach is encouraged, proposals that are addressing one country specific topics could be accepted;
  • Overall Experience of the team of researchers while encouraging the participation of young researchers.
  • The Dissemination plan included in the proposal

 II. Selection: Based on this technical evaluation, a selection process will take place for the proposals that will receive funding.

The decision of the selection committee will be one of the following:

  • The proposal is accepted
  • The proposal is accepted with a modification in the requested budget
  • The proposal is accepted with suggested modifications (coverage, scope, etc.)
  • The proposal is rejected

Team leader of all proposals will be informed of the decision of the selection committee. The reports of evaluation received by the referees will be sent to all teams. For the accepted proposals, the bureau will send the necessary agreements, general conditions and forms.

 VII. Research Quality and Dissemination

The output of the research should be made in terms of one ore more research report of an average of 40-50 pages, ensuring a good focused analysis and increasing publications’ potentials in scientific journals, articles and policy briefs.

Expected outputs and peer reviewing:

(1) Drafts of the submitted research reports will go through an ex-post evaluation process (‘Peer Review’).

(2) Dissemination plans (other than the channels provided by FEMISE) are very much encouraged but needs to be discussed with FEMISE to ensure proper acknowledgements are made to the support of FEMISE and the European commission.

(3) the Submission of a Policy Brief based on your research work is highly encouraged.


Please send your proposals (before the deadline of 3rd September 2018) by:

Email: internal.competition@femise.org (Subject; Submission of a research proposal)

or by fax:  Fax ++ 33 4 91 31 50 38

or by Post to:

FEMISE Association,

CMCI, 2 rue Henri Barbusse,

13 241 Marseille Cedex 01, France

Tel: ++ 33 4 91 31 51 95


This funding is provided by the European Union through the FEMISE project on “Support to Economic Research studies and Dialogues of the Euro-Mediterranean partnership”. The content of the submitted proposals and the output of these projects are the sole responsibilities of the authors and can under no circumstances be representing the position of the European Union or FEMISE.


[1] The title of the contract is « Support to dialogues, political and economic research and studies of the Euro-Mediterranean Partnership » launched in March 2014.

FEMISE MED BRIEF no8 : Women in the MENA labour market. Can collaborative economy be of help?

The FEMISE Policy Brief series MED BRIEF aspires to provide Forward Thinking for the EuroMediterranean region. The briefs contain succinct, policy-oriented analysis of relevant EuroMed issues, presenting the views of FEMISE researchers and collaborators to policy-makers.

The eighth issue of MED BRIEF “Boosting female labour market participation rates in the MENA region : Can collaborative economy be of help? ”is available by clicking here.

Dr. Katarzyna Sidło, CASE (Center for Social and Economic Research), FEMISE

This policy brief evaluates the potential of collaborative economy for increasing labour force participation of women in the MENA (Middle East and North Africa) region. Specifically, it examines the ways in which the collaborative economy can enable joining labour market to those women who wish to do it, but for various practical (lack of jobs, difficult commutes), societal (restrictions on outside-of-the-house activities), or family (caring responsibilities) reasons had been unable to do so.

The list of FEMISE MED BRIEFS is available here.

The policy brief has been produced with the financial assistance of the European Union within the context of the FEMISE program. The contents of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the European Union.

FEMISE MED BRIEF no7 : The Effects of Syrian Refugees on the Labor Markets of Host Countries

The FEMISE Policy Brief series MED BRIEF aspires to provide Forward Thinking for the EuroMediterranean region. The briefs contain succinct, policy-oriented analysis of relevant EuroMed issues, presenting the views of FEMISE researchers and collaborators to policy-makers. 

The seventh issue of MED BRIEF “The Effects of Syrian Refugees on the Labor Markets of Host Middle Eastern and European Countries” is available by clicking here.

Dr. Roby Nathanson, MACRO Center, Israel

Since 2011, over 5.3 million refugees made their way from Syria to hosting Middle Eastern end European countries. Middle Eastern countries that absorbed the majority of refugees are Turkey, Lebanon and Jordan. In Europe, Germany and Sweden absorbed the largest number of Syrian refugees. This large number of refugees brought the question of their impact on wage growth and unemployment rates to the center of political discourse. This Brief examines this impact.

Dr. Khalid Sekkat, Univ. de Bruxelles, Belgium

It has been found that except for Jordan, the refugees had no impact on the growth in wages and in none of the examined countries the refugees had any impact on unemployment rates. Therefore, it is recommended, among other things, to remove refugee-specific barriers, especially in sectors that experience shortage of workers. It is also recommended to provide training for refugees to match their skills and to use this ‘feared competition’ to upgrade the skills of the national employees. It will also be important to raise public awareness on the contributions of these refugees to the national markets.



The list of FEMISE MED BRIEFS is available here.

The policy brief has been produced with the financial assistance of the European Union within the context of the FEMISE program. The contents of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the European Union.

In memory of Pr. Ahmed Driouchi

It is with deepest regret that FEMISE has to announce to its members and colleagues the departure of one its active and founding members: Prof. Ahmed Driouchi, passed away on the 2nd of May 2018.

Prof. Driouchi was the Professor of Economics, Advisor to the President & Dean of The Institute of Economic Analysis & Prospective Studies (IEAPS) at Al Akhawayn University, Ifrane, Morocco

Since 1995 he joined Al-Akhawan University and became the founder and Dean of the School of Business Administration. Then in 2005 he became the Dean of the Institute Of Economic Analysis & Prospective Studies (IEAPS) at the University.

Prof. Driouchi held a PhD in Applied Economics from the University of Minnesota, USA since 1988, as well as a “Doctorate –ès- Sciences” in Economics from the Hassan II Institute of Agronomy and Veterinary Medicine in Morocco in 1987.

He is the author of hundreds of publications, including articles in refereed journals, chapters in books and books. He was a leading MENA economist on the issues of innovation and the knowledge base economy and their role in development of the MENA region. His work focused on education, youth, health, and poverty. His geographical area of research covers the Arab, MENA and the Mediterranean economies, with their relation to Europe.

He has written many books about Labour and Health Economics, ICT for Health, education and Socieconomic policies, migration, ..etc. He contributed to the FEMISE research with many research studies and was an active participants in almost all its conferences.

Prof. Driouchi had a genuine belief and optimism about the future of the Mediterranean region and was always enthusiastic, professional and persuasive in delivering his views.

Femise lost a valuable member and a dear friend.  Our thoughts are with his family and close ones.

You can send your condolences to contact@femsie.org. They will be published on the website and sent to his family and colleagues.

The FEMISE Staff and Members

Call for papers : GDRI 838 – International Development Economics (IDE)

Recent decades have witnessed renewed interest in development economics. The International Development Economics (IDE) network brings together European researchers and institutions among the most influential on the theme. The GDRI benefits from partial funding from the French National Center for Scientific Research (CNRS). Network activities cover all aspects of development economics, both macro and micro. We invite all the researchers who are interested to join us by submitting a research proposal.

Two keynote speakers are programmed for this event.

Rabah Arezki, Chief economist at The World Bank for Middle East and Northern African Countries (MENA) will provide a conference on the theme: A new economy for Middle East and North Africa countries;

Frédéric Docquier, Professor of Economics at the University of Louvain, member of IRES, on a subject to be defined, but in relation with international migrations.

The GDRI-IDE Symposium will be held at the Center for Studies and Research on International Development (CERDI).

Clermont-Ferrand, 15 and 16 November 2018.

Proposals will be examined by the GDRI’s scientific committee. Interested researchers should submit a two-page abstract by 15 June 2018, and a full paper by 15 September 2018 on the conference website: https://gdriide2018.sciencesconf.org

Contact: gdri-ide.cerdi@udamail.fr

Complexification of production as a vector of economic transition and the role of short-term policies

FEMISE is pleased to announce the publication of its research project FEM42-07, “The complexification of productive systems as a vector of economic transition in the MENA and the role of short-term policies”, coordinated by Pr. Nicolas Peridy (LEAD , University of Toulon).

Our work shows that the economic complexity of a country can be affected by the performance of its neighbors and then influenced by its own geographical position. However, this process may mask regional phenomena of divergence that must be related to the roles played by national and / or regional public policies, as well as the economic, structural and demographic dynamics (GDP / capita, education, innovation, natural resources, urbanization, …).

The main recommendations are :

  • Support the development of new and highly sophisticated products beginning with providing incentives to produce these new products, and targeting activities that have training effects. In particular, Tunisia and the UAE should develop complex products such as machinery, chemical and electrical industrial clusters
  • Quickly implement training adapted to technological changes
  1. Develop part-time training courses in technical, technological, industrial and service sectors in innovative and high value-added sectors
  2. Develop continuing education in these same sectors
  3. Open corporate training in the acquisition of specific skills in these areas (including WTO training on the role of international trade as a vector of technological sophistication)
  • Reform higher and vocational education
  1. Reinforce the adequacy of training in relation to new professions
  2. Develop partnerships with European, Asian or American universities
  3. Develop public / private partnerships
  4. Use the system of professionalized relocated diplomas
  • Develop innovative sectors (support for certain start-ups, FDI, development of free zones or technological business zones), particularly through a tax incentive policy
  • Improve economic freedom, in particular through administrative simplification laws. This will contribute to the improvement of the business environment related to a labor market reform aimed at making it more flexible, transparent and competitive (labor law)
  • Improve logistics performance with appropriate investments but above all appropriate reforms (commercial facilitation in ports, reduction and simplification of administrative procedures, improvement of the effectiveness of customs controls, automation of procedures, effective fight against corruption, etc.)
  • Improve governance, in particular to fight corruption effectively and promote transparency.
  • Reform taxation to make it simpler, more efficient and more incentive
  • Use sound macroeconomic policies, in particular to reduce the economic vulnerability of MENA countries (sustainable fiscal and fiscal policies, debt management, controlled monetary policies)
  • Improve the management of natural resources (gas, oil, etc.):
  1. use the benefits of natural resources to diversify and sophisticate the economy
  2. develop industrial zones based on comparative advantage in natural resources
  3. provide SME financing facilities and building the capacity of local businesses to accelerate structural transformation
  4. continued improvement of macroeconomic policies to effectively manage the risks associated with Dutch disease and the volatility of revenues from natural resources
  5. create a favorable environment for private investment.

These recommendations can be initiated and implemented quickly by public authorities which must send a strong signal to the economic actors in order to accelerate this process of sophistication of the Mediterranean economies, with the aim of promoting growth and employment, particularly qualified.


Ndiouga Sakho: “We must experiment within the territories, with the local actors”

Interviewed during the annual conference of the Euro-Mediterranean Forum of Economic Institutes (Femise-Malta, 7 to 9 February 2018) Ndiouga Sakho, President of the Commission for Urban Development and Sustainable Development of the City of Dakar, discusses the actions of the Territorial Energy Climate Plan implemented in the capital of Senegal thanks to European and Mediterranean partnerships.

Ndiouga Sakho insiste sur la nécessité d'une coopération ville à ville (photo : F.Dubessy)

Ndiouga Sakho insists on the need for city-to-city cooperation (photo: F.Dubessy)

econostrum.info: How does the city of Dakar deal with the issues of sustainable development?

Ndiouga SakhoFor a few years now, the city has been engaged in the fight against climate change. Our capital is home to 80% of the country’s industrial activities in 3% of the country’s size.
We have begun to make a diagnostic of the vulnerability of the city, the environment, the social sector, the economy, and so on. Starting from 2013, we have put together an action and environmental management plan. This enabled us to mobilize €1M on a Territorial Energy Climate Plan financed by the European Union over three years, with a global vision around three points: an adaptation and mitigation strategy, a platform of the actors to cooperate and share lessons and failures, and finally, energy efficiency projects to strengthen the share of renewable energy in public lighting, for example, as in municipal infrastructure, and energy savings. Dakar, along with ten other cities benefiting from this plan, is a laboratory test in Africa with a goal of replicating our experience.
I insist on the city-to-city cooperation and the major role of the territories with the local actors, which are in the same time, the places of emissions as well as of the solutions. This is where we have to experiment.

On what points Dakar can serve as an example?
N.S. : The city has a lot of experience in the field of urban mobility, for example, a system of remote control of all traffic lights to regulate car traffic in case of pollution peaks, paving and street improvement to encourage people to walk or cycle instead of using their vehicles. We are also developing public transportation with the BRT, a fast transport bus, and a TER. As well as the relocation of administrative services to be able to limit the concentration of activities in the city center.

Vegetable gardens in urban and school environments

La ville de Dakar fait la promotion des comportements eco-citoyens (photo : F.Dubessy)

The city of Dakar promotes eco-citizen behavior (photo: F.Dubessy)

What actions have you taken with the population?
N.S.: We have raised awareness of environmental culture in schools and with the promotion of eco-citizen behavior, but also by developing eco-neighborhoods. One of our projects is based on the installation of vegetable gardens in urban and school environments with training and capacity building activities that we have initiated. We are doing all this through a technical partnership with FAO (Editor’s note: Food and Agriculture Organization of the United Nations) in Milan, where we have also been able to find partners within a city university. We have shared this experience with other neighboring countries.

Are you also trying to adapt solutions from Mediterranean countries?
N.S.: Our partnerships in the Mediterranean are unfortunately not very well developed. But, we did several missions in Paris to study the implementation of their climatic plan. Similarly, with the city of Marseille, we have developed our master plan for beach development. The city of Marseille has helped us install pilot projects for our eight beaches.

Interviewed by Frédéric Dubessy, in LA VALETTE (MALTA)


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Zakaria Fahim: “We must make the Africas communicate”

Questioned during the annual conference of the Euro-Mediterranean Forum of Economic Institutes (Femise-Malta, 7 to 9 February 2018), Zakaria Fahim, President of Hub Africa (next edition 2 & 3 May 2018), wants to match Euro-Mediterranean funding with ideas of African start-ups.

Intervention de Zakaria Fahim lors de la conférence annuelle du Femise à Malte (photo : F.Dubessy)

Zakaria Fahim in Malta Femise annual conference (photo : F.Dubessy)

econostrum.info: How do you see the future of relations between the EuroMed and Africa?

Zakaria FahimThe most important thing to do is think in a twofold approach: What to do right now while also thinking about the prospects in the next twenty to thirty years. Africa in 2050 will have 2.5 billion inhabitants versus 450 million in Europe.

When you have a neighbor where 40% of the population is under the age of 15, it is either an opportunity or a time bomb. Geography being stubborn, it becomes very important to be aware of the opportunities that exist in Africa. During my road show, I meet a lot of start-ups. It is possible to connect these two worlds: one that has more mature markets and financing and one where disruptive ideas effervesce.

Morocco has already begun this movement. Does Africa really need Europe to develop?

Z.F. You have to be modest. Today, intra-African trade accounts for 15% of total trade. Morocco will never be able to do anything alone because the stakes are such that, put in perspective with the situation on the continent, we are far from having succeeded. In the list of countries that work the most with Africa one notes the United States, China and then France. Often, its bigger partners work with visions that are so “global” that they can not understand what is happening in Africa. Meanwhile, Europe cannot show lack of concern as to what is happening twelve kilometers from its borders … A beautiful door opens before us. It is up to us to use this paradigm shift, to remain important actors in Africa but acting together. And to do this, we must know how to give time to those who want to move forward and not the other way around. Entrepreneurs often forget that they are farmers more than hunters. I’m growing and I’m waiting for the end of the season to harvest. It is not about shooting and dropping the game. This vision is finished!

“It’s not my neighbor, it’s me”

The President of Hub Africa want it "to be natural for our children to think about Africa as their natural space" (photo : F.Dubessy)

The President of Hub Africa want it “to be natural for our children to think about Africa as their natural space” (photo : F.Dubessy)

How to facilitate this?

Z.F. We have every interest in making Africas communicate. I am administrator of the ENCG Casablanca (note: National School of Commerce and Management), we will for the first time sign agreements with universities in sub-Saharan Africa. This has never been done before. We received sub-Saharans as part of intergovvernmental agreements in the past but were never curious about their abilities even though they represent a real opportunity.

I want it to be natural for our children to think about Africa as their natural space. It’s not my neighbor, it’s me. This appropriation is missing today.
It is not possible to be in a common area where some eat caviar and others only eat every other meal. One day or another, they come to see what is happening at home. The common sense is to say: what interest do I have today for these people to feel good? and how can I preserve my future?

Short FEMISE VIDEO BRIEF of Zakaria Fahim available here

Frédéric Dubessy

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FEMISE MED BRIEF no5 : Egypt and the WTO Government Procurement Agreement

FEMISE is launching its new Policy Brief series MED BRIEF aspiring to provide Forward Thinking for the EuroMediterranean region. The briefs contain succinct, policy-oriented analysis of relevant EuroMed issues, presenting the views of FEMISE researchers and collaborators to policy-makers. 

The fifth issue of MED BRIEF “ Should Egypt join the WTO Government Procurement Agreement (GPA)?” is available here.

Ahmed Farouk Ghoneim (Professeur d'économie, Faculté des sciences économiques et politiques, Université du Caire, FEMISE)

Ahmed Ghoneim (Faculty of Economics & Political Science, Cairo University, FEMISE)

“This Policy Brief, by Ahmed Farouk Ghoneim (Professor of Economics, Faculty of Economics & Political Science, Cairo University), tries to answer the critical question of whether Egypt should join the WTO GPA? The debates on theoretical and policy levels have not reached a clear cut answer regarding the pros and cons of a developing country joining such an agreement. Yet, we try in this policy brief to clarify some of the misconceptions associated with the joining of such agreement, and identify what are the steps needed for membership to be fruitful”

The list of FEMISE MED BRIEFS is available here.


The policy brief has been produced with the financial assistance of the European Union within the context of the FEMISE program. The contents of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the European Union.

Inequality and inclusive growth : Are education and innovation favoring firm performance and well-being?

FEMISE is pleased to announce the publication of its research project FEM42-10, “ Inequality and inclusive growth in the South Mediterranean region: Are education and innovation activities favoring firm performance and citizens’ wellbeing?”.

The research project was coordinated by Inmaculada Martinez-Zarzoso (University Jaume I and University of Goettingen) and includes the following 3 papers:

Returns to Vocational and University Education in Egypt

While tertiary skills are important for growth in developed countries, it is primary and secondary education that are related to development in developing countries. Despite the substantial expansion in technical and vocational education in Egypt, the labor market lacks technical skilled workers not only in numbers but also in competences. This paper examines the impact of education on labor market outcomes in Egypt, with a focus on returns to vocational secondary and technical higher education in 1998, 2006 and 2012. We provide estimates of incremental rates of return to education based on selectivity corrected earnings equations and quantile regressions that give credence to the view that technical education has generally been inequality reducing in Egypt. The main policy implication of this paper’s analysis is that quality and labor market relevance of vocational education remains the key to an effective reform. Encouraging private businesses to invest in vocational education will be of little use if the trainees are still faced with social stigma that relegates them to low-paid jobs. Therefore, a policy recommendation is to design governmental measures to improve the ‘image’ of vocational education in Egypt.

Gender Gap and Firm Performance in Developing Countries

This paper uses firm-level data from the World Bank Enterprise Survey (WBES) to investigate productivity gaps between female and male-managed companies in developing countries and to compare the outcomes obtained for different regions in the world. We depart from the previous literature by using the gender of the top manager as target variable, which is newly available in the 2016 version of the WBES. The main results indicate that it is crucial to distinguish between female management and female ownership and also the confluence between both. We find that when the firms are managed by females and there are not female owners, they show a higher average labour productivity and TFP. However, if females are among the owners and a female is the top manager, then their productivity is lower than for other firms. These results are very heterogeneous among regions. In particular, results in South Saharan Africa, East Asia and South Asia seems to be driving the general results, whereas in Latin America and Eastern Europe and Central Asia, female participation in ownership seems to be negatively related to firm performance.

Real convergence between ENP and southern European countries: a cluster analysis

This paper analyses the convergence pattern of GDP per capita, productivity, inequality and unemployment in both ENP and southern European (SE) countries. It follows the methodology proposed by Phillips and Sul (2007, 2009) in which different convergence paths can be distinguished among heterogeneous economies involved in a convergence process. This heterogeneity is modelled through a nonlinear time varying factor model, which provides flexibility in studying idiosyncratic behaviours over time and across section. The main results from the convergence analysis show that whereas there is convergence in unemployment, GDP per capita and productivity between EU and ENP countries, no convergence is found for inequality. Among the challenges of an evolving neighbourhood, inclusive economic development should be included in the new ENP approach.

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