Trade Openness and Regional Inequality: Case of Tunisia

Since the 1990s, Tunisia has experienced an increasingly pronounced trade openness and adopted a multitude of reforms to reinforce it through large number agreements with different foreign partners. However, this gone simultaneously increase in regional inequalities wish have continued grow, that is why we are interested verifying, on one side, how affects economic growth and, other one, whether increases disparities within country over period (1990-2018). We start from hypothesis if manages boost growth, its positive outcomes can contrasting effect at level, benefiting some regions detriment others. By crossing double accentuate territorial imbalances. will use panel data econometrics estimate our model. test for Tunisian case, especially between 24 governorates where, there no measure yet, hence interest study. Our econometric analysis clearly shows differences endowments characteristics level regions, such as infrastructure or human capital, positively affect inequalities. Openness also appears be factor influence, particular by enhancing polarization activities FDI certain