Wednesday, December 3, 2014

A fascinating economic impact study

Link to story about the economic impact of cover-up businesses

The chair is dedicated to conducting research on the economic and social impact of Tasatur (providing cover for expatriates to illegally run their own business activities) on the Saudi society and ways to combat the phenomenon.
According to Prof. Diyab, “the phenomenon of cover-up businesses has created unhealthy competition in the local market.” He said that the Saudi government has attempted to combat this problem but has been unsuccessful so far with the practice having increased lately. He noted that the government is aware of the negative economic, social, legal and political impact the illegal businesses are having on the society.

I don't know what's meant by "unhealthy competition", but it sounds like these "cover-up" businesses are providing services that people like, and that established businesses don't like them.  I couldn't find an actual academic study on this issue, but am curious what an study attempting to quantify this impact would look like.

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