Contribution of Structural Change to Productivity Growth: Evidence from Tunisia

Abstract

The objective of the article is to analyse the dynamics of sectoral productivity growth in Tunisia and assess the contribution of structural change to these dynamics. Using sectoral and firm data, we show that productivity increased at a relatively sustained pace in Tunisia in the last three decades, but that the contribution of structural change remained limited. Trade reforms had a positive impact, while investment and the policies implemented in the mid-1990s had negative effects on structural change. The main impediments are barriers to entry in some sectors, the inefficiency of factor markets and the focus of the firms' upgrading programme only on some selected sectors.