DOCSLIB.ORG

Identifying Tunisia's Binding Constraints to Broad-Based Growth

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Identifying Tunisia's Binding Constraints to Broad-Based Growth A joint study by The African Development Bank The Government of Tunisia The Government of the United States 2013 ???? Towards a New Economic Model for Tunisia Contributors African Development Government of Government of Bank Tunisia United States Team Members Coordinating ministry Lead agency Ministry of Regional Develope- Vincent Castel ment and Planing Millennium Challenge Team Leader Corporation (MCC) Principal Program Coordinator Team Members for Tunisia, ORNA Rached Ben Saleh Team Members Kaouther Abderrahim Team Leader, Director, MDRP Economist,ORNA Theresa Osborne Sofiene Gaaloul Team Leader, Lead Economist, Statistician / Sous Directeur, Samia Mansour MDRP MCC Economist, EDRE Anis Nacibi Omar Parbhoo Gilles Nancy Economist, MDRP Economist, Department of Professor, Aix-Marseille Univer- State sity – Centre de recherche de Dridi Nasreddine développement économique et MDRP Don Sillers recherche international (DEFI) Mourad Abdesslem Banque Centrale de Tunisie Senior Economist, United Management States Agency for International Mustapha Bouzayene Development (USAID) Jacob Kolster Director, Institut National de la Statistique (INS) Regional Director for Egypt, With capable assistance Libya and Tunisia, ORNA Hayet Jouini from Statistician, INS Steve kayizzi-Mugerwa Cynthia Berning Director Research Department, Helel Yamen EDRE Chef de service, INS MCC Shimeles Abebe Fadia Bougacha Brad Cunningham Division Manager, EDRE Statistican, INS MCC Kaouther Chibani With capable contribution Statistician, INS Jerrod Mason from USAID Bouslema Nejib Daniel Gurara Lead Economist, Institut Tunisien Senior Research Economist, de la Competitivité et des Jeremy Streatfeild EDRE Études Quantitatives (ITCEQ) MCC Emanuele Santi Raoudha Hadhri Principal Country Economist for Statistician, ITCEQ Tunisia, ORNA Haithem Hammami Statistician, ITCEQ Koffi Marc Kouakou Statistician, ESTA Safa Mkaouer Statistician, ITCEQ Mohamed Safouane Ben Aissa Mokhtar Kouki Economist, ESTA Professor Ecole Supérieure de la statistique et de l’analyse de l’information (ESSAI). 4 Towards a New Economic Model for Tunisia Contents 1. Executive Summary 8 1.1. Introduction 8 1.2. Methodology of Growth Diagnostics 10 1.3. The Binding Constraints to Growth in Tunisia 13 1.4. Summary of Evidence 16 2. Overview of Tunisia’s Growth Experience 23 2.1. Tunisia’s Economic Growth and Policies 1961-2010 24 2.2. The Year 2011: Revealing failures in the growth model 38 2.3. Conclusion 48 3. Finance: Does Costly Finance Represent a Bin ding Constraint to Tunisia’s Growth? 50 3.1. Introduction 50 3.2. Financial and Banking Sector: Recent Evolution 51 3.3. Tests of the Constraint 57 3.4. Other Indicators of Access 67 3.5. Conclusion 70 3.6. Technical Annex to the Finance Chapter 71 4. Do Macroeconomic Risks and Distortions Pose a Binding Constraint to Growth in Tunisia? 74 4.1. Macroeconomic Policies before the Revolution 75 4.2. Growth Acceleration Analysis 80 4.3. Tunis ia’s Macro Situation in the Aftermath of the Revolution 83 4.4. Conclusion 86 4.5. Technical Annex to the Macro Chapter: Overcoming Growth Challenges— Looking for Drivers and Obstacles of Growth Accelerations 87 5 Towards a New Economic Model for Tunisia 5. Do Micro Risks and Distortions Pose a Binding Constraint to Growth? 93 5.1. Introduction 93 5.2. Weak Micro Appropriability 96 5.3. Corruption, Weak Property Rights, and Barriers to Entry 99 5.4. Taxation 109 5.5. The Regulatory and Fiscal Costs of Employing Workers 116 5.6. Trade Barriers and Micro Distortions 132 5.7. Conclusion 136 Box 5.A. Youth Unemployment and Labor Market Regulation in Tunisia 138 6. Are Market Failures in Innovation a Binding Constraint to Growth in Tunisia? 143 6.1. Introduction 143 6.2. Transformation and Innovation Performance 144 6.3. Government Policies to Address Market Failures in Innovation 152 6.4. Alternative Drivers of Tunisia’s Mixed Performance in Innovation 154 6.5. Conclusion 155 7. Does a Shortage of Human Capital Represent a Binding Constraint to Tunisia’s Growth? 157 7.1. Demograp hic trends 157 7.2. Health 158 7.3. Schooling and Workforce Training 160 7.4. Labor Market Outcomes: Employment, Unemployment, and Migration 170 7.5. Conclusion 177 7.6. Annex to Chapter 7 179 8. Is a Lack of Adequate Infrastructure a Binding Constraint to Growth in Tunisia? 186 8.1. General Quality and Supply of Infrastructure 186 8.2. Transportation Infrastructure 187 8.3. Energy 195 6 Towards a New Economic Model for Tunisia 8.4. Water and Sanitation 197 8.5. Communications Infrastructure 198 8.6. Conclusion 200 8.7. Annex to Chapter 8 201 9. Does a lack of natural capital represent a binding constraint to Tunisia’s growth? 205 9.1. Introduction 205 9.2. Mineral Wealth 205 9.3. Land Resources 207 9.4. Water Resources 209 9.5. Distance to Markets 212 9.6. Conclusion 214 References 217 7 Towards a New Economic Model for Tunisia ???? 8 Towards a New Economic Model for Tunisia 1. Executive Summary 1.1 Introduction was expanding employment fast enough to absorb the growing supply of In January of 2011, the people of Tunisia university graduates, leading to rapidly took to the streets to protest the existing rising rates of unemployment among 23-year-old regime, thus igniting the Tunisia’s most educated young people. Tunisian Revolution and inspiring a wave Increasing economic dissatisfaction was of popular upheaval in the Arab world. reinforced by a lack of political freedom To some observers the sudden and by increasing high-level corruption, outpouring of discontent was a surprise. which had a corrosive effect on the Tunisia had achieved a notably solid business climate. In the end, the record of economic growth, which revolution was sparked by a conflict averaged near ly 5 percent per year over between a small, informal fruit vendor the previous decade. Growth had in and the police in a region particularly turn helped reduce the rate of poverty to lacking in business and employment below 5 percent nationally by 2005 opportunities. The fruit vendor’s position (source: official INS statistics).1 Yet this of economic disenfranchisement and apparent success obscured inherent loss of dignity prompted his tragic self- weaknesses in the country’s development immolation, with well-known and far model. Unemployment remained reaching consequences. Yet the stubbornly high and youth seemingly mundane precipitating events unemployment kept rising. Regional were also emblematic of both the disparities in economic growth, income importance of small informal activities to and wealth created what many today earn a living, and of the lack of freedom consider to be “two Tunisias”—one to engage in and retain the fruits of one’s relatively affluent, along the coastal endeavors in pre-revolutionary Tunisia. regions, and another in the lagging interior regions. Standards of living for Today, Tunisia faces several major many Tunisians stagnated, while few economic, social, and political opportunities existed either to invest or challenges as it attempts to create a work in private enterprises. Meanwhile, more democratic, accountable political neither the public nor the private sector system and an economic policy regime 1 Details are provided in Chapter 2: Overview of Recent Economic Trends. 9 Towards a New Economic Model for Tunisia that can foster greater prosperity for a ingredient of a successful revision of broader segment of its population. Tunisia’s development model is a clear Short-term risks have emerged since the understanding and resolution of the revolution—in particular frequent strikes most binding impediments to the and social unrest due to pent-up country’s broad-based growth.4 economic demands of the population, and elevated macroeconomic fragility. This study attempts to identify these These risks must be managed so that constraints, both as they were they do not undermine the economic manifested in the years leading up to the and social progress already achieved. revolution and today. The methodology Charting a successful course requires starts from the widely accepted rebalancing the role of the state to proposition that private sector ensure an acceptable measure of equity investment and entrepreneurship are and economic security along with ultimately the keys to sustained adequate and necessary freedom for the economic growth. Many useful studies private sector to play its role of have been conducted recently on the innovating, investing, and creating Tunisian economy (for example, ADE employment opportunities.2-3 At the (2012), Erdle (2011), AfDB (2012), ILO same time, an economic strategy that (2011)), providing important details on a fails to address the specific underlying variety of economic issues. However, sources of the country’s previous the methodology adopted in this study economic failures is unlikely to succeed. has the singular advantage of casting a The revolution has relieved the country clear, focused light on the most binding of a corrupt and autocratic leader, but constraints among the many economic many of the underlying structural issues issues under discussion, and allowing for that have inhibited more broad-based greater prioritization of the most critical growth remain. Thus, an essential constraints to address as part of a 2 One debate of special relevance to Tunisia and other countries of the Arab world concerns the desired level of equity (or economic equality) and what is meant by this—equity of opportunity, or equity of outcomes. 3 It should be stressed that the conceptual framework on which this report rests clearly
Load more

Recommended publications
  • Greening the Agriculture System: Morocco's Political Failure In
    Greening the Agriculture System: Morocco’s Political Failure in Building a Sustainable Model for Development By Jihane Benamar Mentored by Dr. Harry Verhoeven A Thesis Submitted in Partial Fulfilment of the Requirements for the Award of Honors in International Politics, Edmund A. Walsh School of Foreign Service, Georgetown University, Spring 2018. CHAPTER 1: INTRODUCTION ............................................................................................................ 2 • THE MOROCCAN PUZZLE .................................................................................................... 5 • WHY IS AGRICULTURAL DEVELOPMENT IMPORTANT FOR MOROCCO? .............................. 7 • WHY THE PLAN MAROC VERT? .......................................................................................... 8 METHODOLOGY ................................................................................................................... 11 CHAPTER 2: LITERATURE REVIEW ................................................................................................ 13 • A CONCEPTUAL FRAMEWORK FOR “DEVELOPMENT”....................................................... 14 • ROSTOW, STRUCTURAL ADJUSTMENT PROGRAMS (SAPS) & THE OLD DEVELOPMENT DISCOURSE ......................................................................................................................... 19 • THE ROLE OF AGRICULTURE IN DEVELOPMENT .............................................................. 24 • SUSTAINABILITY AND THE DISCOURSE ON DEVELOPMENT & AGRICULTURE ................
    [Show full text]
  • The Impact of Domestic Investment in the Industrial Sector on Economic Growth with Partial Openness: Evidence from Tunisia
    Munich Personal RePEc Archive The Impact of Domestic Investment in the Industrial Sector on Economic Growth with Partial Openness: Evidence from Tunisia Bakari, Sayef and Mabrouki, Mohamed and elmakki, asma LIEI, Faculty of Economic Sciences and Management of Tunis (FSEGT), University Of Tunis El Manar, Tunisia. August 2017 Online at https://mpra.ub.uni-muenchen.de/81039/ MPRA Paper No. 81039, posted 31 Aug 2017 07:53 UTC The Impact of Domestic Investment in the Industrial Sector on Economic Growth with Partial Openness: Evidence from Tunisia Sayef Bakari PhD Student, Department of Economics Science, LIEI, Faculty of Economic Sciences and Management of Tunis (FSEGT), University Of Tunis El Manar, Tunisia. Email: [email protected] Mohamed Mabrouki Associate Professor of Economic, Higher Institute of Companies Administration University of Gafsa, Tunisia, Email: [email protected] Asma Elmakki Department of Economics Science, Higher Institute of Companies Administration University of Gafsa, Tunisia. Email: [email protected] Abstract: This paper investigates the relationship between industrial domestic investment and economic growth in Tunisia. In order to achieve this purpose, annual data for the periods between 1969 and 2015 were tested using the Johansen co-integration analysis of VECM and the Granger- Causality tests. According to the result of the analysis, it was determined that there is a negative relationship between industrial domestic investment and economic growth in the long run term. Otherwise, and on the basis of the results of the Granger causality test, we noted a unidirectional causal relationship from economic growth to industrial domestic investment in the short term. These results provide evidence that domestic investment in industrial sector, thus, are not seen as the source of economic growth in Tunisia during this large period and suffer a lot of problems and poor economic strategy.
    [Show full text]
  • Attractions) with Respect to What Is Lacking, and What the Tourist Desires
    b- Editions Kahia Tunis - Grafica Roma published by national office of tourism and societe tunisienne de banque a study of the existing and pc 4 ltential structure of tourism foreword Tourism in Tunisia is growing and has become both an important source of foreign exchange for the economy and source of employment for many towns and villages. The importance of foreign exchange and the potential of tourism has caused the Tunisian Government to devote a great deal of effort toward attracting an increasing number of visitors. It is believed that this industry, as it presently exists, and with development anticipated in the future, constitutes an excellent investment opportunity for American and foreign businessmen. Before further investments are made to accommodate additional tourists, it is essential that the potential market be examined to determine from what geographical area the tourists ori- ginate, their possible mode of transport, why they visit a particular area, what they spend, how long they stay, when they come, and how many visit the country. Once the pattern of the tourist market is known, interested investors can evaluate in detail, the region's resources (attractions) with respect to what is lacking, and what the tourist desires. When this determination is made, the process of creating new facilities should begin. The tourist resources of Tunisia, as described in this report, consist of the beauty of the landscape, the monuments of historic and cultural interest, and the existence of towns that are both attractive and able to furnish facilities for recreation, shopping, etc., while providing the necessary physical elements, viz., water, communications, power, etc., which are basic requirements essential to support hotels and related facilities.
    [Show full text]
  • Volume 38, Issue 1
    Volume 38, Issue 1 The Impact of Domestic Investment in the Industrial Sector on Economic Growth with Partial Openness: Evidence from Tunisia Sayef Bakari LIEI, University of Tunis El Manar, Tunisia. Mohamed Mabrouki Asma Elmakki Higher Institute of Companies Administration University Higher Institute of Companies Administration University of Gafsa, Tunisia. of Gafsa, Tunisia. Abstract This paper investigates the relationship between industrial domestic investment and economic growth in Tunisia. In order to achieve this purpose, annual data for the periods between 1969 and 2015 were tested using the Johansen co- integration analysis of VECM and the Granger-Causality tests. According to the result of the analysis, it was determined that there is a negative relationship between industrial domestic investment and economic growth in the long run term. Otherwise, and on the basis of the results of the Granger causality test, we noted a unidirectional causal relationship from economic growth to industrial domestic investment in the short term. These results provide evidence that domestic investment in industrial sector, thus, are not seen as the source of economic growth in Tunisia during this large period and suffer a lot of problems and poor economic strategy. Citation: Sayef Bakari and Mohamed Mabrouki and Asma Elmakki, (2018) ''The Impact of Domestic Investment in the Industrial Sector on Economic Growth with Partial Openness: Evidence from Tunisia'', Economics Bulletin, Volume 38, Issue 1, pages 111-128 Contact: Sayef Bakari - [email protected], Mohamed Mabrouki - [email protected], Asma Elmakki - [email protected]. Submitted: August 28, 2017. Published: January 24, 2018. 1. Introduction Kaldor (1966) is considered to be the initiator of exposing that investment in the industrial sector as a fundamental element of economic development.
    [Show full text]
  • The Jasmine Revolution and the Tourism Industry in Tunisia
    UNLV Theses, Dissertations, Professional Papers, and Capstones Fall 2011 The Jasmine Revolution and the Tourism Industry in Tunisia Mohamed Becheur University of Nevada, Las Vegas Follow this and additional works at: https://digitalscholarship.unlv.edu/thesesdissertations Part of the International Business Commons, Recreation Business Commons, and the Tourism and Travel Commons Repository Citation Becheur, Mohamed, "The Jasmine Revolution and the Tourism Industry in Tunisia" (2011). UNLV Theses, Dissertations, Professional Papers, and Capstones. 1141. http://dx.doi.org/10.34917/2523139 This Professional Paper is protected by copyright and/or related rights. It has been brought to you by Digital Scholarship@UNLV with permission from the rights-holder(s). You are free to use this Professional Paper in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s) directly, unless additional rights are indicated by a Creative Commons license in the record and/or on the work itself. This Professional Paper has been accepted for inclusion in UNLV Theses, Dissertations, Professional Papers, and Capstones by an authorized administrator of Digital Scholarship@UNLV. For more information, please contact [email protected]. Running head: THE JASMINE REVOLUTION 1 THE JASMINE REVOLUTION AND THE TOURISM INDUSTRY IN TUNISIA by Mohamed Becheur Bachelor of Finance University Paris Dauphine, France 2009 A professional paper submitted in partial
    [Show full text]
  • Department of Agricultural Economics
    Staff Paper Series Staff Paper P70-11 June 1970 OLIVE OIL PRICE POLICY IN TUNISIA By Osama A. Al-Zand Department of Agricultural Economics University of Minnesota Institute of Agriculture St. Paul, Minnesota 55108 Staff Paper P70-11 June 1970 OLIVE OIL PRICE POLICY IN TUNISIA Osama A. A1-Zand Republic of Tunisia Ministry of Agriculture Agricultural Development Division Bureau of Economic Studies OLIVE OIL PRICE POLICY IN TUNISIA by Osama A. A1-Zand Agricultural Economics Research Report No. 4 June 1970 This Staff Paper is an English translation of a report published in French by the Bureau of Economic Studiesg Ministry of Agriculture~ Republic of Tunisia. OLIVE OIL PRICE POLICY IN TUNISIA by Osama A. A1-Zand* In terms of value added, olive oil is one of the most important agricultural commodities in Tunisia. It is also the most important agricultural export commodity. Tunisia ranks second to Spain in world olive oil exports. Currently, these exports account for about 20 percent of total export earnings of Tunisia. This is equivalent to about 40 percent of total agricultural export earnings. Tunisia is by far the largest olive oil producing country in North Africa and the Middle East and ranks sixth among the world’s producers of olive oil. Considering the adaptability of the olive tree to the climatic and soil conditions of Tunisia, olive culture is expected to maintain its importance in Tunisian agriculture. Programs to expand tree population and regeneration of the less productive trees should even increase the importance of the olive crop in Tunisia’s agricultural sector.
    [Show full text]
  • Winners, Losers and the Political Economy Of
    Winners, Losers and the Political Economy of the Middle East and North Africa : A brief look at industrial development, trade, productivity and jobs Michelle Marshalian To cite this version: Michelle Marshalian. Winners, Losers and the Political Economy of the Middle East and North Africa : A brief look at industrial development, trade, productivity and jobs. Economics and Finance. Université Paris sciences et lettres, 2019. English. NNT : 2019PSLED056. tel-03222257 HAL Id: tel-03222257 https://tel.archives-ouvertes.fr/tel-03222257 Submitted on 10 May 2021 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. Préparée à Dauphine - PSL Winners, Losers and the Political Economy of the Middle East and North Africa: A brief look at industrial development, trade, productivity and jobs Soutenue par Composition du jury : Michelle MARSHALIAN El Mouhoub MOUHOUD Le 28 Juin, 2019 Dauphine- PSL Directeur Mohamed Ali MAROUANI Paris 1 Panthéon-Sorbonne Co-Directeur École doctorale nonuméro Philippe DE VREYER École doctorale d’économie Dauphine-PSL Président Leila BAGHDADI
    [Show full text]
  • FILE C0PY Report No
    RESTRICTED FILE C0PY Report No. P-29 Public Disclosure Authorized This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized REPORT AND RECOMMENDATIONS OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A Public Disclosure Authorized PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF TUNISIA FOR AN EDUCATION PROJECT Public Disclosure Authorized August 31, 1962 REPORT AND RECOMIENDATIONS OF THF. PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED D37VELOPENMT CREDIT TO THE REPUBLIC OF TUNISIA FOR AN EDUCATION PROJECT 1. I submit here-with the following report and recommendations on a proposed development credit to Tunisia for an amount in various currencies equivalent to $5 million, to help finance an education project. PART I - INTRODUCTION 2. In April 1961 the Tunisian Government requested an IDA credit to assist Tunisia's program to expand technical education at the secondary level. The request was accompanied by a study prepared for Tunisia by UNESCO. The Bank economic mission which visited Tunisia in Nlay 1961 concluded that expansion of the education system deserved priority in Tunisia's develop- ment plais, in view particularly of the serious shortage of trained manpower which has been aggravated since independence in 1956 by the progressive departure of Europeans. Accordingly, IDA missions visited Tunisia in November and December 1961 and again in June 1962 to examine the Tunisian educational system, the government's plans for its expansion, and the schools which warranted assistance.
    [Show full text]
  • Morocco and Tunisia April 10-16, 2016
    The National U.S. – Arab Chamber of Commerce in cooperation with the Embassy of Morocco in the United States Embassy of Tunisia in the United States Embassy of the United States in Morocco Embassy of the United States in Tunisia Present a Trade & Investment Mission to Morocco and Tunisia April 10-16, 2016 • Participate in the 3rd Morocco - U.S. Business Development Conference in Rabat, Morocco • Meet and network with business leaders, innovators, investors, and senior government officials in Morocco and Tunisia • Visit the Tangier Automotive City or the Noor Solar Power Station Trade & Investment Mission to Morocco and Tunisia Itinerary Sunday, April 10 Arrival in Morocco. Monday, April 11 Networking opportunities, business meetings, and briefings in Rabat. Opening dinner for the conference. Tuesday, April 12 Participate in the 3rd Morocco-U.S. Business Development Conference and develop partnerships with Moroccan business leaders. Wednesday, April 13 Site visits to the Automotive City in Tangier or the Noor Solar Power Station in Ouarzazate. Thursday, April 14 Travel to Tunis. Meet with Tunisian business leaders. Friday, April 15 Networking opportunities, commercial meetings, and briefings in Tunis by business leaders and senior government officials. Saturday, April 16 Depart Tunis. End of mission. Registration Fee: $2,500 Registration Fee Covers: Senior government meetings, executive-level business networking opportunities, site visits to leading companies, in-country ground transportation, and some meals. NOT included in the registration fee: airfares, hotel stays, some meals, sightseeing packages or personal expenses. Please Note: U.S. passport holders traveling to Tunisia and Morocco do not require visas. Register Today! For more information, please contact Nazha Benchaln at the National U.S.-Arab Chamber of Commerce by telephone at (202) 289-5920 or via email at [email protected].
    [Show full text]
  • Agricultural Sector Performance and Nigeria's Economic Growth
    Asian Journal of Agricultural Extension, Economics & Sociology 15(1): 1-13, 2017; Article no.AJAEES.31828 ISSN: 2320-7027 SCIENCEDOMAIN international www.sciencedomain.org Agricultural Sector Performance and Nigeria’s Economic Growth Eze Onyebuchi Michael 1* 1Department of Economics, Ebonyi State University, Abakaliki, Ebonyi State, Nigeria. Author’s contribution The sole author designed, analyzed and interpreted and prepared the manuscript. Article Information DOI: 10.9734/AJAEES/2017/31828 Editor(s): (1) Angel Paniagua Mazorra, Centre for Human and Social Sciences, Spanish Council for Scientific Research, Spain. Reviewers: (1) Leela Dhar Mangi, SKUAST, Jammu, India. (2) Amire Comfort, Crawford University, Faith City, Igbesa, Ogun-State, Nigeria. Complete Peer review History: http://www.sciencedomain.org/review-history/17937 Received 26 th January 2017 Accepted 13 th February 2017 Original Research Article rd Published 23 February 2017 ABSTRACT The study investigated the contribution of agricultural sector output to the growth of domestic economy in Nigeria for the period 1980-2014. Specifically, the study examined the causality between agricultural sector and economic growth, as well as the impact of the sector on the growth of the Nigerian domestic economy. Cointegration test, Vector Error Correction Model (VECM) and Granger causality test were utilized in the analysis. The variables employed in the investigation include real gross domestic product (RGDP), value of agricultural output (VAO), foreign private investment (FPI) and financial development (FD). A stationarity test was conducted through the application of the Augmented Dickey-Fuller (ADF) stationarity test, and the result showed that all the variables except RGDP were non-stationary at level; however, the variables such as VAO, FPI and FD became stationary after first differencing.
    [Show full text]
  • The EU-Tunisian Relationship After 2011: Resilience, Contestation and the Return of the Neglected Socio-Economic Question
    The EU-Tunisian relationship after 2011: Resilience, contestation and the return of the neglected socio-economic question Luigi Narbone, Director of the Middle East Directions Programme European University Institute Research Project Report 4 December 2020 2020/18 © European University Institute 2020 Content and individual chapters © Luigi Narbone, 2020 This work has been published by the European University Institute, Robert Schuman Centre for Advanced Studies. This text may be downloaded only for personal research purposes. Additional reproduction for other purposes, whether in hard copies or electronically, requires the consent of the authors. If cited or quoted, reference should be made to the full name of the author(s), editor(s), the title, the year and the publisher. Requests should be addressed to [email protected]. Views expressed in this publication reflect the opinion of individual authors and not those of the European University Institute. Middle East Directions Robert Schuman Centre for Advanced Studies Research Project Report RSCAS/Middle East Directions 2020/18 4 December 2020 European University Institute Badia Fiesolana I – 50014 San Domenico di Fiesole (FI) www.eui.eu/RSCAS/Publications/ cadmus.eui.eu The EU-Tunisian relationship after 2011: Resilience, contestation and the return of the neglected socio-economic question Luigi Narbone1* * A different and shorter version of this report forms part of a broader EU-LISTCO report entitled “Report on successes and failures of the EU and member states in dealing with ALS/CO and fostering resilience,” by D. Cadier et al. The EU-LISTCO project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no.
    [Show full text]
  • European Industrial Policies in Tunisia: a Bottom-Up Assessment
    MEDRESET Working Papers No. 29, December 2018 European Industrial Policies in Tunisia: A Bottom-Up Assessment Khaled Guesmi and Jean-Yves Moisseron This project is funded by the European Union’s Horizon 2020 Programme for Research and Innovation under grant agreement no 693055. MEDRESET Working Papers No. 29, December 2018 European Industrial Policies in Tunisia: A Bottom-Up Assessment Khaled Guesmi and Jean-Yves Moisseron1 Abstract This report on the industrial sector in Tunisia falls within the European project MEDRESET. It analyses with a bottom-up perspective the European policies towards the Southern Mediterranean. The study’s main outcome is the following: there is no industrial policy per se in Tunisia, namely following the 2011 revolution despite the efforts and reflection to pull Tunisia away from a low or middle-end out-source specialization that is very dependent on the European stakeholders. This comes despite the efforts exerted by public bodies such as the Agency for the Promotion of Industry and Innovation (API) to improve the situation. The same goes for the textile industry. The question of industry in Tunisia in terms of the Euro- Mediterranean relations is mainly tackled through free trade agreements, the Deep and Comprehensive Free Trade Agreement project (DCFTA), as well as the industrial upgrade policy that seems to have borne fruits. Regarding the challenges, and namely the population’s well-being and needs, the industrial sector is led to play a major role, mostly in welcoming the youth to the labour market, especially young graduates, and more generally to become a dynamic export sector. However, on the short term this entails that the industrial sector step out of the apathy prevailing it since the revolution, attract European investments on a broader scale, and finally on the long-term change its method of insertion into the global economy, namely by winning in technology to work up the value chains.
    [Show full text]