IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Entry, Exit, Resource Reallocation And Productivity Growth In The Tunisian Private Manufacturing Industries

  • RIADH BEN JELILI

    ()

    (Arab Planning Institute, P. O. Box 5334 Safat, Kuwait 13059, Kuwait)

  • MOHAMED GOAID

    ()

    (IHEC, Carthage, University of Tunis, Carthage, Tunisi)

Firm entry and exit is a part of the market selection process by which resources are reallocated within or across industries. The process of entry and exit influences economic performance through firms' internal restructuring, reallocation of resources among firms and changes in market shares of incumbents. This paper sheds light on the magnitude, characteristics and effectiveness of this process in Tunisian manufacturing industries. To this end we start by circumventing the shortage in firm demographics data by merging, for the first time in Tunisia, administrative files based on continuous reporting of fiscal affiliation of private firms with the register of firm affiliates at the National Social Security Fund in order to compile a series on the number of entering, exiting and total firms with 10 workers or more, by year and by industry over the 1996–2004 period. The empirical findings of the paper establish three basic stylized facts: a relatively high firm churning in all Tunisian manufacturing sectors; firm turnover is principally driven by small- and medium-sized firms; and the creative destruction process is the predominant factor driving entry and exit in many manufacturing industries. Moreover, the combination of heterogeneity in productivity and easy entry and exit of firms is found to characterize the manufacturing sector in Tunisia. Accordingly, obstacles to free entry and exit slow the reallocation process and are likely to slow productivity growth.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=pdf&id=pii:S1793812009000097
Download Restriction: Access to full text is restricted to subscribers.

File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=html&id=pii:S1793812009000097
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Middle East Development Journal.

Volume (Year): 01 (2009)
Issue (Month): 02 ()
Pages: 189-208

as
in new window

Handle: RePEc:wsi:medjxx:v:01:y:2009:i:02:p:189-208
Contact details of provider: Web page: http://www.worldscinet.com/medj/medj.shtml

Order Information: Email:


No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wsi:medjxx:v:01:y:2009:i:02:p:189-208. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.