Entry, Exit, Resource Reallocation And Productivity Growth In The Tunisian Private Manufacturing Industries
This paper is motivated by the growing empirical evidence suggesting large firm dynamism in all market oriented economies and the significant role that this dynamism plays in promoting reallocation of resources and ultimately productivity growth. It attempts to make two major contributions: circumventing shortage in firm demographics data in Tunisia by merging, for the first time in Tunisia, administrative files based on continuous report of fiscal affiliation of private firms with the register of firm affiliates at the National Social Security Fund in order to compute series on the number of entering (new), exiting (out of business) and total firms with 10 workers or more, by year and by industry over the 1996-2004 period; and providing a comprehensive picture of the magnitude, characteristics and effectiveness of the creative destruction process and making the first attempt at understanding the sources of observed variations across industries in Tunisia. The empirical findings of the paper establish three basic stylized facts: a relative 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.
|Date of creation:||Mar 2009|
|Date of revision:||Mar 2009|
|Publication status:||Published by The Economic Research Forum (ERF)|
|Contact details of provider:|| Postal: 21 Al-Sad Al Aaly St. Dokki, Giza|
Web page: http://www.erf.org.eg
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:477. 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: (Namees Nabeel)
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.