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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)

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.

Suggested Citation

  • Rim BEN AYED MOUELHI, 2007. "The Impact Of Trade Liberalization On Tunisian Manufacturing: Structure, Performance And Employment," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 25, pages 87-114.
  • Handle: RePEc:tou:journl:v:25:y:2007:p:87-114
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    File URL: http://region-developpement.univ-tln.fr/fr/pdf/R25/Ben.pdf
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    References listed on IDEAS

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    1. 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.
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    4. 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(1), pages 1-15.
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    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.
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    More about this item

    Keywords

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

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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