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The Impact Of Trade Liberalization On Tunisian Manufacturing: Structure, Performance And Employment

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  • Rim BEN AYED MOUELHI

    (ISCAE, Université de La Manouba, Tunisie)

Abstract

The aim of this article is to establish a comparison concerning the Tunisian manufacturing industry between two periods that feature different commercial regimes: relative protectionism (1987 – 1995) and liberalization (after 1995).The analysis deals with different elements of conduct and performance: productivity growth, employment growth, exports growth, capital intensity growth…The significance of the difference between these conduct and performance indicators across the two policy regimes is firstly evaluated using a statistical test. An econometric analysis is then conducted. A country- specific analysis is likewise carried out. The results of statistical and econometrics tests are alike and suggest that the reduction in tariffs and non tariffs levels conducted in this first active phase of liberalization in Tunisia had no significant effects on manufacturing growth nor on employment growth. No significant improvements were recorded in the overall production growth, which appears to be due mainly to a decrease in productivity growth. The regulations and limits upon factor mobility in Tunisia in the considered period are the main factors that account for the delay in adjustment and the dilution of the benefits of trade reform.

Suggested Citation

  • Rim BEN AYED MOUELHI, 2007. "The Impact Of Trade Liberalization On Tunisian Manufacturing: Structure, Performance And Employment," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 25, pages 87-114.
    • Handle: RePEc:tou:journl:v:25:y:2007:p:87-114
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    References listed on IDEAS

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    Cited by:

    1. Mohamed Amara & Mohamed Ayadi, 2011. "Local Employment Growth in the Coastal Area of Tunisia: A Dynamic Spatial Panel Approach," Working Papers 650, Economic Research Forum, revised 12 Jan 2011.
    2. Mohammad Alawin & Bader Obeidat & Muawiya Attiyat & Buthaina Muhtaseb & Ghazi Al-Assaf & Alaaeddin Al-Tarawneh, 2017. "The Impact of Trade Liberalization on the Manufacturing Sector in Jordan," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 10(1), pages 1-34, February.
    3. Ismat Nasim & Imran Sharif Chaudhry & Furrukh Bashir, 2022. "Effects of Trade, Environment Quality and Human Capital on Industrial Sector Output in Developing Countries: A Panel Data Analysis," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 4(1), pages 107-116, March.

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    More about this item

    Keywords

    TRADE LIBERALIZATION; PERFORMANCE; GROWTH; STRUCTURE; MANUFACTURING SECTOR; TUNISIA;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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