Mohamed Ali MAROUANI and Rim MOUELHI
The objective of the paper is to analyze 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 and labor market reforms did not seem to increase it. The main reasons are barriers to entry in some sectors, the inefficiency of factor markets, and the focus of the firms’ upgrading program only on some selected sectors.