The Microeconomic Impact of Political Instability: Firm-Level Evidence from Tunisia - Economic Research Forum (ERF)

The Microeconomic Impact of Political Instability: Firm-Level Evidence from Tunisia

Samer Matta

September, 2017


36 pages

D2. Production and Organizations
D7. Analysis of Collective Decision-Making
P2. Socialist Systems and Transitional Economies
O1. Economic Development

This paper explores the impact of political instability on firms. The context of this paper is Tunisia, a country that saw a surge in political instability events after the 2011 Jasmine revolution. Using a new dataset, we show that political instability was a major concern for small and exporting firms as well as for those that were operating in the tourism sector, those that have suffered from vandalism and those that were located in the interior region of Tunisia. Most importantly, we find that political instability was the most damaging constraint to firm growth after the Arab Spring.


تستكشف هذه الورقة تأثير عدم الاستقرار السياسي على الشركات. سياق هذه الورقة هو تونس، البلد الذي شهد موجة من أحداث عدم الاستقرار السياسي بعد ثورة الياسمين عام 2011. وباستخدام مجموعة بيانات جديدة، نبين أن عدم الاستقرار السياسي كان مصدر قلق كبير للشركات الصغيرة والمصدرة وكذلك الشركات العاملة في قطاع السياحة وتلك التي عانت من التخريب وتلك التي تقع في المنطقة الداخلية من تونس. والأهم من ذلك، نجد أن عدم الاستقرار السياسي كان العائق الأكثر ضررا للنمو الثابت بعد الربيع العربي

Samer Matta



There are no Events PAST

Related Publications

Working Papers

Information and Communication Technologies and Employment Generation in Turkish Manufacturing Industry

Yilmaz Kilicaslan and Ünal Töngür

This study aims to examine the impact of the use of Information and Communication Technologies ... read more

Working Papers

Firm and Regional Factors of Productivity: A Multilevel Analysis of Tunisian Manufacturing

Mohamed Amara and Khaled Thabet

In this paper, we use multilevel models to simultaneously analyze individual, sectoral and regional characteristics ... read more

Working Papers

Informal Competition, Firms’ Productivity and Policy Reforms in Egypt

Nesma Ali and Boris Najman

This paper investigates the effect of the competition stemmed from informal firms on formal firms’ ... read more