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Globalization and Crisis in Textile Industry in Tunisia

Hakim Ben Hammouda ()

No 9815, Working Papers from Economic Research Forum

Abstract: In this paper, the author investigates the reasons for the rapid growth of Foreign Direct Investment (FDI) in Tunisia starting in the early 1970s, and its decline starting in the middle of the 1980s. Using the development of the textile industry as a model, the author hypothesizes that the inability to speedily expand the skills of the workforce, coupled with worldwide rapid technological change in the textile industry, together explain the drop in FDI in this industrial sector in Tunisia.

Date: 1998-01-10, Revised 1998-01-10
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