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Which is the best for Tunisian Economic Growth: Urbanization or Ruralization?

Bakari, Sayef and El Weriemmi, Malek (2022): Which is the best for Tunisian Economic Growth: Urbanization or Ruralization?

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Abstract

A country's economic growth determines its degree of national economic integration and into global value chains. This study aims at examining the effect of urbanization and ruralization for the Tunisian case using annual data expanded from 1965 to 2019. The results of the estimation of an autoregressive distributed lag model and an error correction model show that urbanization has a negative effect on Tunisian economic growth. However, ruralization boosts it. Thus, Tunisia would not be at the stage of urban saturation. Urbanization without industrialization would therefore have reached its limits. Accordingly, Tunisia was built without development and therefore no longer appears as a privileged place but sometimes even excluded. Sometimes the only response to the urban crisis is “the urban exodus”.

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