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Working Paper - 213 - Disentangling the Pattern of Geographic Concentration in Tunisian Manufacturing Industries

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Abstract

In this paper, we examine the pattern of spatial concentration of manufacturing industries observed in Tunisia and explore the factors driving firms' location choices at the provincial level. We consider specialization and competition indicators as driving forces and also examine the extent to which location choice is related to Centre Business Districts. We estimate the effect of location variables on sector growth and productivity. Our results suggest that firms choose to locate in a specific governorate because of high local demand, which brings about transportation cost savings. Moreover, we find a concentration of activity in Greater Tunis where most growth in firms and employment is observed, while locating in littoral governorates enhances the productivity growth of governorate industries.Urbanization economies in Tunisia encourage the appearance of virtuous circles in the transmission of innovative ideas, so firms can benefit from the proximity of the other manufacturing units. Geographic concentration in Tunisian manufacturing industries is of the kind of commercial relations between the sectors rather than the division and the exploitation of technological complementarities between sectors.

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  • Mohamed Ayadi & Wided Matoussi, 2014. "Working Paper - 213 - Disentangling the Pattern of Geographic Concentration in Tunisian Manufacturing Industries," Working Paper Series 2149, African Development Bank.
    • Handle: RePEc:adb:adbwps:2149
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    References listed on IDEAS

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    Cited by:

    1. Carol Newman & John Page, 2017. "Industrial clusters: The case for Special Economic Zones in Africa," WIDER Working Paper Series wp-2017-15, World Institute for Development Economic Research (UNU-WIDER).
    2. Nizar Becheikh, 2021. "Political stability and economic growth in developing economies: lessons from Morocco, Tunisia and Egypt ten years after the Arab Spring," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 3(2), pages 229-251, June.
    3. Nizar Becheikh, 2021. "Political stability and economic growth in developing economies: lessons from Morocco, Tunisia and Egypt ten years after the Arab Spring," Post-Print hal-03583934, HAL.

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