Munich Personal RePEc Archive

Dynamic Externalities and Regional Development: The case of Tunisia

DRIDI, Manel (2015): Dynamic Externalities and Regional Development: The case of Tunisia.

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In this paper we seek to estimate the impact of local economic structure on the regional employment growth of 8 mainstream industry sectors in 24 local areas of Tunisia between 2000 and 2009. By referring to new economic geography and the empirical approaches dealing with agglomeration economies and dynamic externalities, we show that regional employment growth in industrial sector in Tunisia is driven mainly by externalities related to specialization while diversity do not seem to be important determinants of regional employment growth. Moreover we find that local competition have a positive significant effect on local employment growth.

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