The Impact of Trade Liberalization on Regional Growth and Poverty in Tunisia

Rim Chatti and Faycel Zidi

No 563, Working Papers from Economic Research Forum

Abstract: The paper focuses on how trade reform affected regional growth during the stage of economic transformation. The main question addressed is whether progressive trade liberalization has an impact on regional economic growth and poverty and reduces regional disparities amongst the Tunisian regions. The paper explores the factors behind such transformations. In order to achieve this goal the paper is divided into 3 sections. The first section briefly describes the data and model underlying the study. The second section presents the simulation results on regional growth and poverty. Simulation results reveal that all the regions experience better economic performance with freer-trade, but poverty outcomes differ from one region to another. The concluding remarks are presented in the last section.

Pages: 21
Date: 2010-01-11, Revised 2010-01-11
New Economics Papers: this item is included in nep-ara, nep-cmp and nep-geo
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