Testing the productivity bias hypothesis in Middle East countries

摘要

Purpose - The purpose of this paper is to empirically test the validity of the productivity bias hypothesis(PBH) in 18 Middle East countries.Design/methodology/approach - The paper employs autoregressive-distributed lag approach tocointegration approach and stability tests.Findings - The empirical results suggest the existence of the PBH only in the case of Bahrain, Kuwaitand Saudi Arabia.Practical implications - Conclusions drawn from this research could be useful for the policy-makers ofgovernments and practitioners in international trade organizations.Originality/value - This study extends the existing literature by providing initial empirical time seriesevidence of the PBH for the entire Middle East countries.