Restructuring And Economic Performance: The Experience Of The Tunisian Economy

This paper aims at identifying the sources of comparative advantage and the bottlenecks of the Tunisian economy. By using an activity analysis model and yearly data on the input-output structure and the factor endowments, the paper determines the evolution of the potential of the Tunisian economy between 1983 and 1996 and some of its key aspects that the industrial restructuring program of 1996 could improve or reinforce. The analysis sheds light on the scarcity of various types of labor, in particular of qualified labor. Cette étude cherche à identifier les sources d'avantage comparatif et les goulots d'étranglement en Tunisie. En utilisant un modèle d'analyse d'activités et des données annuelles de tableaux entrée-sortie et de dotations en facteurs, cette étude détermine l'évolution du potentiel de l'économie tunisienne entre 1983 et 1996 et les améliorations que pourrait y apporter le programme de mise-à-niveau industriel introduit en 1996. L'analyse montre aussi s'il existe des carences de différents types de main-d'?uvre, en particulier du travail qualifié.Tunisia, activity analysis, qualified labor, industrial restructuring program, Tunisie, analyse d'activités, travail qualifié, programme d'ajustement structurel

Economic Restructuring and Total Factor Productivity Growth: Tunisia Over the Period 1983-2001

In this paper we aim to measure and decompose the growth of frontier total factor productivity (TFP) in Tunisia over the period 1983-2001. We define frontier TFP growth as the shift of the economy’s production frontier, which we obtain by solving for each year a linear program, a sort of aggregate DEA analysis. We then decompose this aggregate frontier TFP growth into changes in technology, terms of trade, efficiency and resource utilization. We can also attribute frontier TFP growth to its main beneficiaries: labor, decomposed into five types, capital, decomposed into two types, and the allowable trade deficit. We find that frontier TFP grew by about 1% a year after the introduction of the structural adjustment program of 1987. Labor, in particular unskilled labor, was the main beneficiary of frontier TFP growth. The Solow residual reflecting technological change was the main driver of frontier TFP growth. The terms of trade were not favorable to Tunisia. After 1992, while the Tunisian efficiency frontier moved outwards, the country moved away from its efficiency frontier. Cet article mesure et décompose la croissance de la productivité totale des facteurs (PTF) potentielle en Tunisie sur la période 1983 à 2001. La croissance de la PTF potentielle est définie comme le déplacement de la frontière d’efficience de l’économie, qui est déterminée chaque année à partir d’un programme de programmation linéaire, un genre d’analyse DEA macroéconomique. Cette croissance de la PFT potentielle est décomposée de deux façons : une fois en termes de sources de la croissance, à savoir le changement technologique, les variations de taux de change, les changements d’efficience et utilisation des ressources ; et une fois en termes de bénéficiaires de cette croissance, à savoir le travail, décomposé en cinq types, le capital, décomposé en deux types, et le déficit permis de la balance commerciale. Nous trouvons que la PTF potentielle a cru de 1 % par an après l’introduction du programme d’ajustement structurel de 1987. La croissance de la PTF potentielle est surtout due au résidu de Solow, qui capte le progrès technologique, et a surtout bénéficié au travail non-qualifié. Les termes de l’échange ne furent pas favorables à la Tunisie. Après 1992, la frontière d’efficience s’est déplacée vers l’extérieur, mais la Tunisie s’est distancée de sa frontière d’efficience.Total factor productivity growth, input-output, frontier analysis, Tunisia, Croissance de la productivité totale des facteurs, tableaux entrée-sortie, frontière d’efficience, Tunisie

Restructuring and economic performance: the experience of the Tunisian economy

This paper aims at identifying the sources of comparative advantage and the bottlenecksof the Tunisian economy. By using an activity analysis model and yearly data on theinput-output structure and the factor endowments, the paper determines the evolution ofthe potential of the Tunisian economy between 1983 and 1996 and some of its keyaspects that the industrial restructuring program of 1996 could improve or reinforce. Theanalysis sheds light on the scarcity of various types of labor, in particular of qualifiedlabor.economics of technology ;

The evolution and determinants of frontier total factor productivity growth in Tunisia

Presented at GLOBELICS 2009, 7th International Conference, 6-8 October, Dakar, Senegal.Parallel session 3: Technical change and productivity growthIn this paper we aim to measure and to explain the frontier total factor productivity (TFP) growth in Tunisia over the period 1983-1996. We do not measure TFP growth by the conventional Solow residual. Instead we define TFP growth as the shift of the economy’s production frontier, which we obtain year by year by solving a linear program, a sort of aggregate DEA analysis. We then decompose this aggregate TFP growth into changes of technology, terms of trade, efficiency and resource utilization. We can also attribute TFP growth to its main beneficiaries: labor, decomposed into five types, capital, decomposed into two types, and the allowable trade deficit. We find that potential TFP has been growing after 1986. Labor, in particular machine operators, would be the main source and beneficiary of TFP growth, were resources allocated optimally according to our model. It is only after 1991 that capital, in particular equipment, has been contributing positively to frontier TFP growth. The Solow residual, reflecting technological change, was the main driver of TFP growth. Over the whole period, changes in the terms of trade were detrimental to TFP growth. The Tunisian economy moved closer to its TFP frontier after 1986, but efficiency has again taken a beating after 1991