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GLOBAL VALUE CHAINS: OPPORTUNITIES COME WITH CHALLENGES IN TUNISIA

Feriel Nasser and Feryel Ouerghi ()
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Feriel Nasser: Higher School of Economic and Commercial Sciences Tunis (ESSECT), University of Tunis, Tunisia
Feryel Ouerghi: Higher School of Economic and Commercial Sciences Tunis (ESSECT), University of Tunis, Tunisia

Global Economy Journal (GEJ), 2022, vol. 22, issue 02, 1-39

Abstract: Using data from the OECD-Trade in Value Added (TIVA) database, this paper analyzes Tunisia’s national and sectoral participation and positioning in global value chains (GVC) during 2005–2015. This paper also aims to illustrate countries with which Tunisia is highly integrated into GVC, by exploring the countries of origin of foreign value added in Tunisian exports, and the countries exporting Tunisian domestic value added share of its gross exports. Tunisia is among the most integrated countries, during the whole period of study. It has a high level of participation in GVC in many industrial activities, particularly in the textile, clothing and leather sector, food processing, and electronic and electrical equipment. The backward linkage in its GVC integration can be explained by the choice of specialization in its production, which roughly explains its position in the middle-stream–downstream. However, its participation in value chains remains regional rather than global. Around 60% of its GVC participation is with European countries. Overall, our results suggest that Tunisia has a potential that has been well exploited for the period 2005–2010 (period before the Tunisian revolution). However, this success remains limited since political and socio-economic crises have limited the potential of Tunisia’s current participation in the GVC.

Keywords: Global value chains; international trade; TIVA database; Tunisia; challenges (search for similar items in EconPapers)
JEL-codes: F1 L52 P52 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1142/S219456592350001X

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