Tunisian industrial policy, location and evolution of the industrial space of the interior regions

Abstract

AbstractTunisia's industrial development policies have long been considered as a strategic axis that guarantees the economic development of different regions. The industrial policy has tried to achieve a better distribution of economic activities and to promote industrialization in the interior regions. This article studies the evolution of the industrial space of the interior regions of Tunisia. As it measured the concentration and the geographical specialization of economic activities, in connection with their further estimation on a temporal trend, using a common empirical framework that exploits an intermediate geographic level and manufacturing sectors. This approach yields evidence on the weakly diversified industrial structure of the interior and the southern governorates of Tunisia. It is proved, too, that the growth of the manufacturing industry is accompanied by huge inequalities between space units. Given the previously stated results, the industrial policies in the interior regions of Tunisia would be of considerable benefit if it solves the problem of the market and public policy failure. Thus, we strongly urge the establishment of new components of industrial policy.