THE IMPACT OF TRADE LIBERALIZATION ON TUNISIAN MANUFACTURING: STRUCTURE, PERFORMANCE AND EMPLOYMENT

Rim Mouelhi

Region et Developpement, 2007, vol. 25, 87-114

Abstract: The aim of this article is to establish a comparison concerning the Tunisian manufacturing industry between two periods that feature different commercial regimes: relative protectionism (1987 – 1995) and liberalization (after 1995).The analysis deals with different elements of conduct and performance: productivity growth, employment growth, exports growth, capital intensity growth…The significance of the difference between these conduct and performance indicators across the two policy regimes is firstly evaluated using a statistical test. An econometric analysis is then conducted. A country- specific analysis is likewise carried out. The results of statistical and econometrics tests are alike and suggest that the reduction in tariffs and non tariffs levels conducted in this first active phase of liberalization in Tunisia had no significant effects on manufacturing growth nor on employment growth. No significant improvements were recorded in the overall production growth, which appears to be due mainly to a decrease in productivity growth. The regulations and limits upon factor mobility in Tunisia in the considered period are the main factors that account for the delay in adjustment and the dilution of the benefits of trade reform.

Keywords: TRADE LIBERALIZATION; PERFORMANCE; GROWTH; STRUCTURE; MANUFACTURING SECTOR; TUNISIA (search for similar items in EconPapers)
JEL-codes: F14 F16 F43 O41 O47 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:tou:journl:v:25:y:2007:p:87-114

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