Economic restructuring and total factor productivity growth: Tunisia over the period 1983-2001

Sofiane Ghali and Pierre Mohnen

No 2010-033, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: In this paper we aim to measure and decompose the growth of frontier total factor productivity (TFP) in Tunisia over the period 1983-2001. We define frontier TFP growth as the shift of the economy's production frontier, which we obtain by solving for each year a linear program, a sort of aggregate DEA analysis. We then decompose this aggregate frontier TFP growth into changes in technology, terms of trade, efficiency and resource utilization. We can also attribute frontier TFP growth to its main beneficiaries: labor, decomposed into five types, capital, decomposed into two types, and the allowable trade deficit. We find that frontier TFP grew by about 1% a year after the introduction of the structural adjustment program of 1987. Labor, in particular unskilled labor, was the main beneficiary of frontier TFP growth. The Solow residual reflecting technological change was the main driver of frontier TFP growth. The terms of trade were not favorable to Tunisia. After 1992, while the Tunisian efficiency frontier moved outwards, the country moved away from its efficiency frontier.

Keywords: total factor productivity growth; input-output; frontier analysis; Tunisia (search for similar items in EconPapers)
JEL-codes: O47 O55 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Economic Restructuring and Total Factor Productivity Growth: Tunisia Over the Period 1983-2001 (2010)
Working Paper: Economic Restructuring and Total Factor Productivity Growth: Tunisia over the Period 1983-2001 (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2010033

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