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Agriculture and economic growth in Tunisia

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  • Houssem Eddine Chebbi

Abstract

Purpose - The purpose of this paper is to assess the role of agriculture in economic growth and its interactions with other sectors of the Tunisian economy. Design/methodology/approach - Johansen's multivariate approach is used to study the cointegration of the different sectors of the Tunisian economy and overcome the problem of spurious regression. Special attention is paid to investigate non‐causality between agriculture and other economic sectors. Findings - Empirical results suggest that all Tunisian economic sectors cointegrate and tend to move together. In addition, weak exogeneity for the agricultural sector is rejected and this underlines the fact that the agricultural sector should be considered by policymakers in the analysis of intersector growth. However, in the short run, agriculture in Tunisia seems to have a partial role as a driving force in the growth of other non‐agricultural sectors and agricultural growth may be conducive only to the agro‐food industry sub‐sector. In addition, while Tunisia started improving quality of services and restructuring the banking sector to make it “internationally” viable, this paper's statistical results indicate that the agricultural sector does not fully benefit from the development of the commerce and services sector and the presence of credit market constraints continue to hamper growth of agricultural output in Tunisia. Originality/value - Although high importance is placed on the agricultural sector, in the context of the Tunisian economy, the issue of agricultural contribution to the economic growth has often been raised by policymakers but rarely examined empirically.

Suggested Citation

  • Houssem Eddine Chebbi, 2010. "Agriculture and economic growth in Tunisia," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 2(1), pages 63-78, February.
    • Handle: RePEc:eme:caerpp:v:2:y:2010:i:1:p:63-78
    DOI: 10.1108/17561371011017504
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    Citations

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    Cited by:

    1. Muyambiri, Brian, 2024. "The role of agriculture, industry and the service sector in economic growth: The case of Mozambique," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 18(2), January.
    2. Amjad Ali & Marc Audi & Ismail Senturk & Yannick Roussel, 2022. "Do Sectoral Growth Promote CO2 Emissions in Pakistan? Time Series Analysis in Presence of Structural Break," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 410-425, March.
    3. Tampubolon, Jongkers, 2023. "Food and agricultural sector in Indonesia’s economic growth during COVID-19 pandemic: an ARDL approach," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(2), June.
    4. Md. Sayemul Islam & Md. Asraf Mahmud Hasif & Nishat Sultana Ema & Hasneen Jahan, 2020. "Role of Agriculture and Manufacturing Sectors in the Economic Growth of Bangladesh and India: An ARDL Approach," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 23(78), pages 82-92, December,.
    5. Nur Feriyanto, 2015. "Dominant Economic Sectors in Kulonprogo, Gunungkidul, and Bantul Regencies in Yogyakarta Special Province," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 7(2), pages 93-106, April.
    6. Ben Jebli, Mehdi & Ben Youssef, Slim, 2015. "Renewable Energy Consumption and Agriculture: Evidence for Cointegration and Granger causality for Tunisian Economy," MPRA Paper 68018, University Library of Munich, Germany.
    7. Adesoye, Bolaji A. & Adelowoka, Oluwaseyi A. & Maku, Emmanuel O. & Salau, Shakirat O., 2018. "Enhancing Agricultural Value Chain for Economic Diversification in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 6(1), January.
    8. Boubaker Dhehibi & Udo Rudiger & Hloniphani Peter Moyo & Mohamed Zied Dhraief, 2020. "Agricultural Technology Transfer Preferences of Smallholder Farmers in Tunisia’s Arid Regions," Sustainability, MDPI, vol. 12(1), pages 1-18, January.
    9. Raza, Syed Ali & Ali, Yasir & Mehboob, Farhan, 2012. "Role of agriculture in economic growth of Pakistan," MPRA Paper 32273, University Library of Munich, Germany, revised Jan 2012.
    10. Daniel Francois Meyer, 2019. "An Assessment Of The Importance Of The Agricultural Sector On Economic Growth And Development In South Africa," Proceedings of International Academic Conferences 9912288, International Institute of Social and Economic Sciences.
    11. Ben Jebli, Mehdi & Ben Youssef, Slim, 2015. "The role of renewable energy and agriculture in reducing CO2 emissions: evidence for North Africa countries," MPRA Paper 68477, University Library of Munich, Germany.
    12. O.A. Fadeyi & A.A. Ogundeji & B.J. Willemse, 2014. "Establishing the linkages between the South African agricultural trade balance and macroeconomic indicators," Agrekon, Taylor & Francis Journals, vol. 53(4), pages 92-105, November.

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