Winners and Losers in Industrial Policy 2.0: An evaluation of the impacts of the Tunisian Industrial Upgrading Program

Mohamed Marouani and Michelle Marshalian

No 1302, Working Papers from Economic Research Forum

Abstract: Large scale business subsidies tied to national industrial development promotion pro-grams are notoriously difficult to study and inseparable from the political economy aspect of large government programs. The Tunisian Industrial Upgrading Program, initiated in the late 80’s, to improve the competitiveness of Tunisian firms increasingly exposed to international competition through firm subsidies, is such an example. The continuation and resurgence of industrial devlopment programs, such as the Tunisian IUP, makes the rigorous evaluation of this type of program within the political economy framework, increasingly important. We use the Tunisian national firm registry database and a perceptions’ survey administered by the national research institute to measure the impact of the IUP and its beneficiaries. Using inverse propensity score re-weighted differences-in-differences regressions, we find that when program recipients are large firms, gains of the program are mostly retained by capital-owners, while when subsidies are distributed to small-sized firms, more gains go to labor.

Pages: 47 pages
Date: 2019, Revised 2019
New Economics Papers: this item is included in nep-ara and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published by The Economic Research Forum (ERF)

Downloads: (external link)
http://erf.org.eg/wp-content/uploads/2019/04/1302.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://erf.org.eg/wp-content/uploads/2019/04/1302.pdf [301 Moved Permanently]--> https://erf.org.eg/wp-content/uploads/2019/04/1302.pdf)
https://bit.ly/2GtL5dZ

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:erg:wpaper:1302

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Namees Nabeel ().