Imported Inputs and Export Growth: Evidence from Tunisia | Importations des entrants et croissance des exportations : expériences de la Tunisie
2001
Di Pietro, G. (Institute for Perspective and Technological Studies, Sevilla (Spain))
This paper studies the role of imported inputs in improving Tunisian export growth during the 1980's. Exporting firms might have improved their competitiveness as a result of significant reductions in average cost that, in turn, were caused by favourable changes in relative imported inputs' prices. A pooled time-series model is set up in order to estimate the effects of changes in effective rate of tariff protection on exports as a proportion of GDP. The attention is focused on the impact of the dismantling of tariff barriers for four product categories: all goods, manufactured products, machinery and electrical, and textile. Empirical results suggest that several factors, including the dinar's real devaluation and the removal of import restrictions, which since the mid-80's have accompanied the process of trade liberalisation in Tunisia exerted a strong positive influence on export growth
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