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Exploring the relationship between micro-enterprises and regional development: Evidence from Tunisia

Author

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  • Jean Bonnet

    (Normandie University, UNICAEN, CREM UMR CNRS 6211, France)

  • Sana El Harbi

    (University of Sousse (Tunisia))

  • Faten Gazzah

    (Normandie University, UNICAEN, CREM UMR CNRS 6211, France and University of Sousse (Tunisia))

Abstract

We investigate the relationship between the presence of micro-enterprises and regional development, as measured by a validated index of regional development, at the level of Tunisian delegations (small-scaled regions). Applying spatial measures and spatial econometric techniques on a data set of 262 delegations, our results show that in disadvantaged areas, a higher micro-enterprise presence is positively related to regional development. However, in relatively higher developed areas of Tunisia, micro-enterprises appear to play only a marginal role in regional development. Our results emphasise the importance of attracting large, capital-intensive firms in efficiency-driven economies like Tunisia. Nevertheless, although not quite a replacement for large firms, our results also show the important and positive role that micro-enterprises can play in regions where large, capital-intensive firms are absent.

Suggested Citation

  • Jean Bonnet & Sana El Harbi & Faten Gazzah, 2017. "Exploring the relationship between micro-enterprises and regional development: Evidence from Tunisia," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2017-14, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  • Handle: RePEc:tut:cremwp:2017-14
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    More about this item

    Keywords

    Micro-enterprises; Tunisia; regional development; spatial autocorrelation; spatial heterogeneity;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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