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Economic and Social Effects of Opening

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  • Nasfi Fkili Wahiba

Abstract

The opening is necessary, but not sufficient, it helps provide remedial opportunities for developing countries by providing the means for poor countries to get out of underdevelopment, but on the other hand it makes them incur costs and risks. Our study conducted for the case of Tunisia showed that the opening will increase inequality, if it is not accompanied by control policies against disparities. This paper shows that the Atkinson index evolves in the same sense as the unemployment rate and the share of exports in Gross Domestic Product. Whereas, research and development expenditures, investment and human capital negatively act against rising inequality. Therefore, we will have to question about the nature of the opening that allows developing countries to take advantage of opportunities with minimum costs. So in order to be relevant, the opening must be prudent, diversified, solid and reciprocal.

Suggested Citation

  • Nasfi Fkili Wahiba, 2015. "Economic and Social Effects of Opening," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(3), pages 336-344, March.
    • Handle: RePEc:hur:ijarbs:v:5:y:2015:i:3:p:336-344
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    More about this item

    Keywords

    Inequality; Opening; Polarization; human capital; Specialization;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F15 - International Economics - - Trade - - - Economic Integration
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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