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Standards and political connections: Evidence from Tunisia

Author

Listed:
  • Hendrik Kruse

    (LEO - Laboratoire d'Économie d'Orleans [2021-2022] - UO - Université d'Orléans - UT - Université de Tours, University of Göttingen)

  • Inma Martínez-Zarzoso

    (University of Göttingen, Universitat Jaume I = Jaume I University)

  • Leila Baghdadi

    (Université de Tunis)

Abstract

In this paper we investigate whether trade liberalization leads to more stringent product standards in a developing country context, uncovering the role that the connected firms’ market share plays in markets dominated by imports. We estimate a two-part model using data over the period from 2002 to 2010 to test whether additional product standards emerge in sectors where politically connected firms have a higher market share. Our main results show that the mechanisms we anticipated are in fact at play in Tunisia. During the implementation period of the EU-Tunisia association agreement, we find that sectors with a higher import share of connected firms – linked to the Ben Ali family – tend to have a higher probability of an increasing number of technical barriers to trade. This result is robust to addressing endogeneity issues and to the introduction of dynamics into the model.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Hendrik Kruse & Inma Martínez-Zarzoso & Leila Baghdadi, 2021. "Standards and political connections: Evidence from Tunisia," Post-Print hal-03676587, HAL.
  • Handle: RePEc:hal:journl:hal-03676587
    DOI: 10.1016/j.jdeveco.2021.102731
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    Cited by:

    1. Yushen Du & Hongli Bao & Fan Zhang, 2025. "RETRACTED ARTICLE: Strategizing Enterprise Dominance in Standards Associations: The Power of Relational Capital and Market Dynamics," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 501-532, March.
    2. Calì, Massimiliano & Graciano, Simón Caicedo & Ghose, Devaki & Montfaucon, Angella Faith & Ruta, Michele, 2026. "Trade policy and exporters’ resilience: Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 179(C).
    3. Xuejun Wang & Huiying Zhou & Dongmei Su, 2022. "Does the internationalisation of China's agri‐food standards affect export quality upgrading?—Evidence from firm‐product‐level data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(4), pages 887-911, October.
    4. Dai, Min & Ye, Yongwei, 2025. "Hometown favoritism and intra-regional trade barriers under decentralization: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 235(C).
    5. Jones, Sam & Schilling, Felix & Tarp, Finn, 2026. "Politicians doing business: Evidence from Mozambique," Journal of Development Economics, Elsevier, vol. 178(C).
    6. Mariz Abdou Kalliny & Chahir Zaki, 2024. "Are Global Value Chains Women Friendly in Developing Countries ? Evidence from Firm-Level Data," Working Papers hal-04392960, HAL.
    7. Mostafizur, Rahman Md. & Asma, Khatun Mst. & Islam, Moinul & Saijo, Tatsuyoshi & Kotani, Koji, 2025. "Does future design induce people to make a persistent change to sustainable food consumption?," Food Policy, Elsevier, vol. 135(C).
    8. Aboushady, Nora & Zaki, Chahir, 2023. "Are global value chains for sale? On business-state relations in the MENA region," IDOS Discussion Papers 17/2023, German Institute of Development and Sustainability (IDOS).
    9. Marcio Cruz & Leila Baghdadi & Hassen Arouri, 2022. "High growth firms and trade linkages: Imports do matter," Small Business Economics, Springer, vol. 59(1), pages 79-92, June.
    10. Aboushady, Nora & Zaki, Chahir, 2025. "Political connections and participation in global value chains: Evidence from MENA firms," European Journal of Political Economy, Elsevier, vol. 89(C).
    11. Khatun Mst Asma & Moinul Islam & Tatsuyoshi Saijo & Koji Kotani, 2025. "A future design social experiment for sustainable agricultural production," Working Papers SDES-2025-3, Kochi University of Technology, School of Economics and Management, revised Jan 2025.

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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