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The Political Economy Of Trade Policy In Tunisia

Author

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  • SONIA NACCACHE

    (Faculté des Sciences Économiques et de Gestion de Tunis, Tunis)

Abstract

This paper explores the political economy determinants of cross-industry distribution of protection in Tunisia. Instead of the contribution motive, we assume that the government was seeking legitimacy and, to that end, chose import substitution as an industrial strategy to promote industries with learning potential but still with a likely concern for tariff proceeds as well as for rent generation. Following Esfahani (2005), we include in the latter motive the need for the government to alleviate risk for groups that have imperfect access to credit and/or insurance markets. The estimation of a simple model for a cross-section of 35 Tunisian manufacturing industries in 1997 shows that the industrial distribution of nominal protection tended to obey thespecial-interests pressuresemanating from big, capitalistic firms, supplying consumer goods in the import substitution sectors. However, the workers' interests and the governmentad hocgrowth objectives seem to matter as well.

Suggested Citation

  • Sonia Naccache, 2009. "The Political Economy Of Trade Policy In Tunisia," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 31-58.
    • Handle: RePEc:wsi:medjxx:v:01:y:2009:i:01:n:s1793812009000048
    DOI: 10.1142/S1793812009000048
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    References listed on IDEAS

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    1. James Harrigan & Egon Zakrajsek, 2000. "Factor Supplies and Specialization in the World Economy," NBER Working Papers 7848, National Bureau of Economic Research, Inc.
    2. Hadi Salehi Esfahani, 2005. "Searching for the (dark) forces behind protection," Oxford Economic Papers, Oxford University Press, vol. 57(2), pages 283-314, April.
    3. Chang Hong, 2013. "The political economy of tariff protection in China: evidence from the WTO accession," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1295-1316, November.
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    Cited by:

    1. Gunes Asik & Ulas Karakoc & Mohamed Ali Marouani & Michelle Marshalian, 2019. "Productivity, structural change and skills dynamics: Evidence from a half century analysis in Tunisia and Turkey," Working Papers 20190001, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
    2. Gunes Asik & Michelle Marshalian & Ulas Karakoc & Mohamed Ali Marouani, 2018. "Productivity, Structural Change and Skills Dynamics in Tunisia and Turkey," Working Papers hal-04000250, HAL.

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