IDEAS home Printed from https://ideas.repec.org/a/ags/afjecr/308773.html
   My bibliography  Save this article

What is the Cost of Political Instability in Tunisia? Evidence from 592 Private Firms

Author

Listed:
  • Hosny, Amr

Abstract

Using detailed firm-level data covering 592 firms in the private sector in Tunisia covering the period 2009-2012, this paper (i) examines the relationship between firm characteristics and their perception of the effect of political instability on their business operations, and (ii) tests whether political instability has had a negative effect on firm performance. Using ordered and binary probit/logit models, we find that (i) larger-sized firms are more likely to report political instability as a sever obstacle to their operations. Using OLS and an endogenous treatment linear regression models, we find that (ii) the perception of political instability is negatively associated with firm performance, and after correcting for endogeneity it can even have a negative causal effect on firms’ sales and employment growth, all else held constant. Results are largely robust to different specifications.

Suggested Citation

  • Hosny, Amr, 2020. "What is the Cost of Political Instability in Tunisia? Evidence from 592 Private Firms," African Journal of Economic Review, African Journal of Economic Review, vol. 8(3), November.
    • Handle: RePEc:ags:afjecr:308773
    DOI: 10.22004/ag.econ.308773
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/308773/files/200434-Article%20Text-503076-1-10-20201011.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.308773?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hirut Wolde & Ms. Rina Bhattacharya, 2010. "Constraints on Trade in the MENA region," IMF Working Papers 2010/031, International Monetary Fund.
    2. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    3. Rina Bhattacharya & HirutWolde, 2010. "Constraints on Trade in the MENA Region," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 65(3), pages 251-272, September.
    4. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    5. Desai, Raj M. & Olofsgård, Anders, 2011. "The Costs of Political Influence: Firm-Level Evidence From Developing Countries," Quarterly Journal of Political Science, now publishers, vol. 6(2), pages 137-178, September.
    6. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ernest Ouédraogo & Ibrahim Ouédraogo & Emmanuel Lompo, 2020. "Political Instability and Firm Performance: A Microeconomic Evidence from Ivory Coast," American Journal of Economics and Business Administration, Science Publications, vol. 12(1), pages 49-55, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amr Hosny, 2018. "Firm Performance and their Perception of Political Instability in Egypt: Evidence from an Endogenous Treatment Regression Model," Journal of African Development, African Finance and Economic Association (AFEA), vol. 20(2), pages 61-68.
    2. Hosny Amr, 2017. "Political Stability, Firm Characteristics and Performance: Evidence from 6,083 Private Firms in the Middle East," Review of Middle East Economics and Finance, De Gruyter, vol. 13(1), pages 1-21, April.
    3. Sungho Park & Sachin Gupta, 2012. "Handling Endogenous Regressors by Joint Estimation Using Copulas," Marketing Science, INFORMS, vol. 31(4), pages 567-586, July.
    4. Banal-Estañol, Albert & Duso, Tomaso & Seldeslachts, Jo & Szücs, Florian, 2022. "R&D spillovers through RJV cooperation," Research Policy, Elsevier, vol. 51(4).
    5. Claudio Detotto & Laura Serra & Marco Vannini, 2019. "Did specialised courts affect the frequency of business bankruptcy petitions in Spain?," European Journal of Law and Economics, Springer, vol. 47(1), pages 125-145, February.
    6. Hübler, Michael, 2016. "Does Migration Support Technology Diffusion in Developing Countries?," World Development, Elsevier, vol. 83(C), pages 148-162.
    7. Laura Bottazzi & Paolo Manasse & Sarah Grace See, 2017. "Better Wed Over the Mixen Than Over The Moon? Break-ups of Inter-ethnic Marriages in Italy," Carlo Alberto Notebooks 499, Collegio Carlo Alberto.
    8. Tripathi, Amarnath & Sardar, Sucheta & Shyam, Hari Shankar, 2023. "Hybrid crops, income, and food security of smallholder families: Empirical evidence from poor states of India," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    9. Mekonnen, Tigist, 2017. "Productivity and household welfare impact of technology adoption: Micro-level evidence from rural Ethiopia," MERIT Working Papers 2017-007, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Temesgen Belissa & Robert Lensink & Anne Winkel, 2020. "Effects of Index Insurance on Demand and Supply of Credit: Evidence from Ethiopia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1511-1531, October.
    11. Banal-Estañol, Albert & Duso, Tomaso & Seldeslachts, Jo & Szücs, Florian, 2022. "R&D spillovers through RJV cooperation," Research Policy, Elsevier, vol. 51(4).
    12. Andrew Perumal & David Timmons, 2017. "Contextual Density and US Automotive CO2 Emissions across the Rural–Urban Continuum," International Regional Science Review, , vol. 40(6), pages 590-615, November.
    13. Sènakpon Fidèle A. Dedehouanou & Luca Tiberti & Hilaire G. Houeninvo & Djohodo Inès Monwanou, 2019. "Working while studying: Employment premium or penalty for youth in Benin?," Working Papers PMMA 2019-03, PEP-PMMA.
    14. Sandra Müllbacher & Wolfgang Nagl, 2017. "Labour supply in Austria: an assessment of recent developments and the effects of a tax reform," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 465-486, August.
    15. Alexandridis, George & Chen, Zhong & Zeng, Yeqin, 2021. "Financial hedging and corporate investment," Journal of Corporate Finance, Elsevier, vol. 67(C).
    16. Florencia Fiorentin & Mariano Pereira & Diana Suárez, 2020. "The relationship between public funds, innovation and employment among Argentinean manufacturing firms," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 773-791, July.
    17. Christian Bayer & Falko Juessen, 2012. "On the Dynamics of Interstate Migration: Migration Costs and Self-Selection," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(3), pages 377-401, July.
    18. Che-Wei Liu & Guodong (Gordon) Gao & Ritu Agarwal, 2019. "Unraveling the “Social” in Social Norms: The Conditioning Effect of User Connectivity," Information Systems Research, INFORMS, vol. 30(4), pages 1272-1295, April.
    19. Rihab Bellakhal & Mohamed-Badrane Mahjoub, 2015. "Estimating the effect of vocational training programs on employment and wage: The case of Tunisia," Economics Bulletin, AccessEcon, vol. 35(3), pages 1820-1833.
    20. Michal Kolesár, 2013. "Estimation in an Instrumental Variables Model With Treatment Effect Heterogeneity," Working Papers 2013-2, Princeton University. Economics Department..

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afjecr:308773. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://www.ajol.info/index.php/ajer/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.