Finance and Competitiveness in Developing Countries

By José María Fanelli; Rohinton Medhora | Go to book overview

8

Trade, finance and competitivenessin Tunisia1

Mustapha K. Nabli, Mejda Bahlous, Mohamed Bechri, Marouane El Abbassi, Riadh El Ferktaji and Bechir Talbi


1.Growth and current account sustainability: an overview

Tunisia's total GDP growth of 5.1 per cent per year during 1965-97 was significantly higher than the average of 3.9 per cent for low- and middle-income countries (World Bank 1999, table 1.4). Its performance in terms of average annual GNP per capita growth of 2.7 per cent per year ranked seventh among non-industrial and non-East Asian countries (World Bank 1998, figure 1.4a). In this chapter, we focus on the experience since the early 1970s, when a major switch and reversal in policy occurred towards a more open and liberal economy. We analyze the factors explaining this experience of a sustained relatively high growth (5.1 per cent per year also during 1972-97) and a large current account deficit averaging 6 per cent of GDP (Table 8.1).

GDP growth fluctuated widely, however, with major swings in the current account balance (Figure 8.1). Agricultural production fluctuations, due to variability in rainfall and terms of trade changes, account for a major part of GDP growth fluctuations, with their effect declining with increased diversification of the economy. Different patterns in growth and the current account are discernable over the periods 1972-80, 1981-6, 1987-9 and 1990-7 (Table 8.1). After a surge in the 1970s, growth declined and the current account deficit increased. A major episode was the balance-of-payments crisis in 1985-6 which followed a period of large current account deficit (8.4 per cent of GDP during 1981-6), a significant decline in terms of trade because of the sharp decline in oil prices and poor productivity growth.

Tunisia mobilized significant external finance for its development. The growth performance and 'creditworthiness' of the country helped sustain this high level of capital inflows. Medium- and long-term gross debt inflows, mainly from official sources, averaged about 8 per cent of GDP and were quite stable (Table 8.1). It was only in the mid-1980s, and more recently in the mid-1990s, that private debt flows were significant. Equity flows, mainly foreign direct investment, were also an important source of external finance. Short-term and portfolio flows were tightly controlled and were not of any importance in external finance, and Tunisia did not experience significant effects from the volatility of private capital inflows.

-222-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Finance and Competitiveness in Developing Countries
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 366

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.