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What drives Tunisian economic growth: urbanization or rural development?

Author

Listed:
  • Sayef BAKARI

    (LIEI, University of Tunis El Manar, Tunisia)

  • Malek El WERIEMMI

    (Higher Institute of Management of Gabes, University of Gabes, Tunisia)

Abstract

A nation's economic growth plays a pivotal role in determining its level of national economic integration and participation in global value chains. This research investigates the impact of urbanization and ruralization on economic growth in the case of Tunisia, utilizing annual data spanning from 1965 to 2019. The findings, derived from the estimation of an autoregressive distributed lag model and an error correction model, reveal a negative correlation between urbanization and Tunisian economic growth. Conversely, ruralization is found to have a positive impact, suggesting that Tunisia may not have reached a stage of urban saturation. The study implies that urbanization, without concurrent industrialization, has encountered limitations. Consequently, Tunisia, having developed without due industrial progress, is no longer perceived as a privileged locale but at times faces exclusion. In addressing the urban crisis, 'urban exodus' becomes, at times, the sole response.

Suggested Citation

  • Sayef BAKARI & Malek El WERIEMMI, 2024. "What drives Tunisian economic growth: urbanization or rural development?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(639), S), pages 215-242, Summer.
    • Handle: RePEc:agr:journl:v:xxxi:y:2024:i:2(639):p:215-242
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    References listed on IDEAS

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    Cited by:

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    2. Jing Zhang & Weiye Xiao & Wen Chen, 2024. "Transformation from Rural Industrialization to Suburban Industrialization in Guangzhou: Pattern and Mechanism," Land, MDPI, vol. 13(9), pages 1-23, September.

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