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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)

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    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.

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    File URL: http://region-developpement.univ-tln.fr/fr/pdf/R25/Ben.pdf
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    Bibliographic Info

    Article provided by Region et Developpement, LEAD, Universite du Sud - Toulon Var in its journal Région et Développement.

    Volume (Year): 25 (2007)
    Issue (Month): ()
    Pages: 87-114

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    Handle: RePEc:tou:journl:v:25:y:2007:p:87-114

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    Related research

    Keywords: TRADE LIBERALIZATION; PERFORMANCE; GROWTH; STRUCTURE; MANUFACTURING SECTOR; TUNISIA;

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    1. Sebastian Edwards, 1991. "Trade Orientation, Distortions and Growth in Developing Countries," NBER Working Papers 3716, National Bureau of Economic Research, Inc.
    2. R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
    3. Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
    4. Alam, Ila M Semenick & Morrison, Andrew R, 2000. "Trade Reform Dynamics and Technical Efficiency: The Peruvian Experience," World Bank Economic Review, World Bank Group, vol. 14(2), pages 309-30, May.
    5. Sharma, K., 2000. "Liberalization and Structural Change: Evidence from Nepalese Manufacturing," Papers 812, Yale - Economic Growth Center.
    6. Bjurek, Hans & Durevall, Dick, 1998. "Does Market Liberalization Increase Total Factor Productivity: Evidence from the Manufacturing Sector in Zimbabwe," Working Papers in Economics 10, University of Gothenburg, Department of Economics.
    7. Eva Paus & Nola Reinhardt & Michael Robinson, 2003. "Trade liberalization and productivity growth in latin american manufacturing, 1970-98," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(2), pages 127-127.
    8. Currie, Janet & Harrison, Ann E, 1997. "Sharing the Costs: The Impact of Trade Reform on Capital and Labor in Morocco," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S44-71, July.
    9. Pavcnik, Nina & Blom, Andreas & Goldberg, Pinelopi & Schady, Norbert, 2003. "Trade liberalization and labor market adjustment in Brazil," Policy Research Working Paper Series 2982, The World Bank.
    10. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
    11. Greenaway, David & Morgan, Wyn & Wright, Peter W, 1998. "Trade Reform, Adjustment and Growth: What Does the Evidence Tell Us?," Economic Journal, Royal Economic Society, vol. 108(450), pages 1547-61, September.
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