Politically Connected Firms and Job Creation in Lebanon

The Faculty of Business Administration (FBA) at Al Maaref University hosted on March 29, 2018 Dr. Jamal Haidar from Harvard University, USA who presented his research paper entitled: “Do Political Connections Reduce Job Creation: Evidence from Lebanon”.


The researcher outlined the scale of impact of political connections with firms and their influences on creating jobs, turnover and retention rates, employees’ productivity and Lebanese economic growth and competitiveness. His paper assessed the extent that these firms are capable of enhancing sustainable development in various economy sectors and the Lebanese economy and GDP.

Dr Haider, drew the attention that his paper adopts a scientific methodology and benefits from the analysis of formal databases obtained from the Lebanese Ministry of Finance. The database accounts for officially registered organizations between 2005 and 2010.

Dr. Haidar compared in his research the results with other countries and presented some conclusions and recommendations. He confirmed that politically connected firms in Lebanon and their recruitment practices that are based on favoritism affects negatively the productivity, competitiveness and efficiency of such firms as well as the Lebanese economy and GDP at large.

In the end, an engaging and enriching dialogue took place about the presented insightful and critical notions between Dr. Haider and the members of the audience including academics staff and students.