Abstract
In this paper, we examine the pattern of spatial concentration of manufacturing industries observed in Tunisia and explore the factors driving firmsâ choices of location at the provincial level. We consider specialization and competition indicators as the driving forces and also examine the extent to which location choice is related to centre business districts. We estimate the effect of the location variables on sector growth and productivity. Our results suggest that firms choose to locate in a specific governorate because of high local demand, which brings about transportation cost savings. Moreover, we find a concentration of activity in Greater Tunis where most growth in firms and employment are observed, while locating in littoral governorates enhances the productivity growth of governorate industries. Urbanization economies in Tunisia encourage the emergence of virtuous circles in the transmission of innovative ideas, so firms can benefit from the proximity of other manufacturing units. Geographic concentration in Tunisian manufacturing industries is a kind of commercial relationship between the sectors rather than the division and the exploitation of technological complementarities between sectors.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
