Institutional complementarities and entrepreneurial finance in emerging markets: Evidence from the Middle East and North Africa

Abstract

Abstract The challenge today for the economies of the Middle East North Africa (MENA) region is to leverage the opportunity from increased liquidity, invest in new job creation and nurture key sectors for diversified, sustainable growth. This article shows how financing entrepreneurship is a promising path in this direction, and highlights the opportunities and challenges. This paper does not seek to propose a comprehensive job creation strategy, but to outline steps necessary to reinforce the potential role that entrepreneurial finance can play in job creation, show evidence of success along these lines, and point to policy steps that can be taken in this direction. This work draws on recent developments in organization economics to develop the notion of institutional complementarities and illustrate its importance.