Publication: Are Jordan and Tunisia's Exports Becoming More Technologically Sophisticated? And Why It Matters
Loading...
Date
2012-02
ISSN
Published
2012-02
Author(s)
Editor(s)
Abstract
The last decade has witnessed two interesting features in international trade. First, high-tech products have become the fastest growing segment of international trade. Second, developing countries are increasingly becoming exporters of high-tech products thanks to greater trade openness, greater ability to master and use technologies, and a rise in foreign direct investments. The objective of this paper is to pinpoint the changes in Jordan and Tunisia's production and export structures over the last decade or so. Authors were use two highly disaggregated panel export database and a 'product-based' methodology that allows a mapping of products classified by technological content and their sector of origin. The database used runs from 2003 to 2010 for Jordan and from 1995 to 2009 for Tunisia, providing a pseudo-panel structure. Finally, improving the environment for innovation may facilitate the movement up the technological ladder in both Jordan and Tunisia.
Link to Data Set
Citation
“Diop, Ndiame; Ghali, Sofiane. 2012. Are Jordan and Tunisia's Exports Becoming More Technologically Sophisticated? And Why It Matters. MENA Knowledge and Learning Quick Notes Series; No. 57. © World Bank. http://hdl.handle.net/10986/10847 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Are Jordan and Tunisia's Exports Becoming More Technologically Sophisticated?(World Bank, Washington, DC, 2012-02)There is a growing consensus that what you export matters for growth (see for instance, Haussman and al. 2007 and Krishna and Maloney (2011)). This paper examines whether and to what extent Jordan and Tunisia, the two most globally integrated countries of the Middle East and North Africa region, are moving up the technological ladder. To that effect, we use two highly disaggregated panel export database (products captured at the 11-digit level) and a 'product-based' methodology that allows a mapping of products classified by technological content and their sector of origin. We find that Jordan and Tunisia have experienced contrasting dynamics over the last decade. Thanks to its large exports of pharmaceutical products, Jordan enjoys a much higher share of high tech products in its export basket (11.5 percent versus 5.4 percent respectively) but this share has been declining over time due to the rapid rise of exports of textiles products. In contrast, from a very low basis, Tunisia has been catching up thanks to a slow but steady rise in medium-high tech products (electronics and mechanical components) and a corresponding decline in the preeminence of exports of textile products. Interestingly, success stories identified in both countries are all associated with the establishment of an 'enclave' where transparent 'rules of the game' are credibly enforced with the help of an external policy anchor either through international agreements (e.g. Jordan's free trade agreement with the US and the signature of and compliance with WTO's Intellectual Property Rights) or the establishment of a 'special zone/regime' such as Tunisia's 'offshore' regime and Jordan's Qualifying Industrial Zone. This finding underscores the importance of overcoming institutional weaknesses and establishing transparent and rules-based Government-business relationships as a pre-requisite for successful global integration in developing countries countries.Publication Tunisia's Global Integration : Second Generation of Reforms to Boost Growth and Employment(Washington, DC, 2008-05)This report addresses the following issues: Chapter one takes stock of the integration policies implemented since the early 1970s and assessed their impact on foreign direct investments (FDI), exports and employment. Chapter two looks at today's major challenges in the manufacturing sector and the specific policies needed to address them. Chapter three assesses the entry, business, and trade restrictions in Tunisia's key backbone services sectors (telecommunication, banking, air transport, accounting, auditing, and legal services) using a well-focused regulatory questionnaire. The restrictiveness indices calculated from the regulatory questionnaire are then used to benchmark Tunisia against Organisation for Economic Co-operation and Development (OECD) and some emerging economies and to simulate the impact of various liberalization options on the price of services and the economy via a multi-region general equilibrium model. Finally, chapter four examines the prospect for increasing exports and off shoring of a large number of services for which Tunisia has demonstrated a strong capacity for export in recent years. The significant increase in real incomes in Tunisia is the result of solid gross domestic product (GDP) growth since the mid-1960s (5 percent a year), low inflation and the demographic transition, faster than in neighboring countries. In 1996-2007, economic growth has exhibited greater resilience to moderate exogenous shocks, thanks to prudent macroeconomic management public debt declined from 62.4 percent in 2001 to 50.9 percent of GDP in 2007 thanks to pro-active debt management. The resulting decline in the debt service since 2005 combined with steady GDP growth allowed the government to 'protect' capital expenditures and key social spending within the context of low but structural fiscal deficit. While the current account remained in deficit over the last 10 years, foreign exchange reserves increased steadily thanks to increasing FDI inflows. In 2007, international reserves increased by US$ 1 billion to US$ 7.8 billion, representing 4.6 months of imports of goods and services.Publication The Economy-wide Effects of Further Trade Reforms in Tunisia’s Services Sectors(2010-06-01)The purpose of this paper is to benchmark Tunisia against other emerging economies in terms of the regulatory barriers affecting particular services sectors, and to assess the economy-wide effects of further liberalizing these services trade restrictions, compared with reducing the dispersion in barriers to its merchandise trade. On the basis of a rather restricted sample of services sectors, partial regulatory reform would yield gains roughly equivalent to full unilateral reform of manufacturing tariffs, but roughly one-tenth the gains from full bilateral reform of border protection in agriculture with the European Union. The adjustment costs associated with these services trade reforms would be minimal. The paper identifies the reasons why the gains from these services reforms are relatively small, and argues that a wider set of reforms could provide win-win outcomes and even fewer adjustment costs. By contrast, the gains in agriculture and manufacturing tend to come at the expense of domestic output in the reforming sectors -- the gains are greater, but so too are the adjustment costs.Publication Natural Resource Abundance, Growth, and Diversification in the Middle East and North Africa : The Effects of Natural Resources and the Role of Policies(Washington, DC: World Bank, 2012-09-08)This book is organized as follows: this first chapter examines the pattern of structural transformation in Middle East and North Africa, or MENA and summarizes the role of various factors examined thoroughly in the rest of the volume. This second chapter examines the correlates of this overall disappointing performance. At the macro level, MENA countries have been unable to maintain depreciated (undervalued) real exchange rates for long periods, yet such undervaluation has proved important to offset the market failures and poor institutional environment that severely hit the dynamic non-resource-intensive traded sectors. This third chapter shows that services sectors in resource-rich MENA countries have been declining as a share of gross domestic product (GDP) and of non-mining GDP as per capita incomes increase. This fourth chapter explores the presence of systematic differences between the patterns of diversification in MENA and the rest of the world. This fifth chapter shows that from a historical perspective, fiscal policy has not contributed significantly to diversification in MENA, because it has been more oriented toward food and fuel subsidies (consumption) rather than toward public goods such as infrastructure (investment). Finally, in this sixth chapter, the authors emphasize the different characteristics of the regional partners in terms of their resource endowments and consider wealth distribution effects within the region.Publication Tunisia's Global Integration : A Second Generation of Reforms to Boost Growth and Employment(Washington, DC : World Bank, 2009)This study on a world integration for Tunisia attempts to contribute to the achievement of the growth of the 11th development plan. It first takes stock of past integration policies, outlining policies implemented and assessing their impact on foreign direct investments (FDI), exports and employment. Then, it examines the current challenges of integration of Tunisia, which is both global and multisectoral pursuant to the actual creation of a free trade area with Europe for industrial products in January 2008. In the light of challenges expected, another generation of integration reform is identified to further improve the positioning of a competitive Tunisia and realize the potential growth in services. The report contains four chapters. Chapter one analyzes integration policies implemented since the early 70s and evaluates the impact thereof on the FDI, exports and employment. Chapter two examines the current challenges and major reforms necessary to correct the side-effects of past integration policies. Chapter three attempts to identify the reforms necessary to improve quality and lower prices of services. Finally, chapter four examines the prospects for export of professional services (accounting, auditing, legal services) and health by Tunisia, which showed a real capacity to compete in these areas in recent years.
Users also downloaded
Showing related downloaded files
Publication IFC Annual Report 2011 : I Am Opportunity(Washington, DC: World Bank, 2011)This annual report of the IFC reviews the years accomplishments. IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by fi nancing private sector investment, mobilizing capital in international fi nancial markets, and providing advisory services to businesses and governments. We play a catalytic role by demonstrating the profi tability of investments in emerging markets. Established in 1956, IFC is owned by 182 member countries, a group that collectively determines our policies. Our work in more than 100 countries allows companies and fi nancial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives.Publication IFC Annual Report 2012 : Innovation, Influence, Demonstration, Volume 2. Results(Washington, DC: World Bank, 2012)This annual report of the International Finance Corporation (IFC) summarizes the innovation and leadership roles in the private sector during fiscal year 2012. The IFC invested a record $20.4 billion in 103 developing countries, reflecting a doubling of annual commitments over the last five years. Those investments included nearly $5 billion mobilized from other investors, and an investment for Sub-Saharan Africa totaling $2.7 billion, nearly twice as much as five years ago. The advisory services program expenditures grew to $197 million, up more than 50 percent over the last five years. Advisory services also helped 33 client governments introduce 56 investment-climate reforms that will improve access to basic services for more than 16 million people. IFC investment clients helped support 2.5 million jobs in 2011 and made 23 million loans totaling more than $200 billion to micro, small, and medium enterprises. Net income before grants to the International Development Association (IDA) totaled $1.66 billion. The IFC has invested more than $23 billion in IDA countries, nearly $6 billion of it in fiscal year 2012 alone.Publication Mobility and Development Periodical, Fall 2024(Washington, DC: World Bank, 2024-10-01)The fourth edition of the Mobility and Development periodical presents nine stories of how countries have evolved transport sector innovations, policy reform, and technical solutions to improve the quality of life. Opening with big data readiness for urban transport in Latin America, the narrative zooms out to present the potential of drones in the region. After unpacking the fiscal risks of the transport sector, experts unpack pressing urban mobility challenges. Dhaka offers an example of how critical governance can help metropolitan transit agencies deliver value. Keeping inclusion in focus, the next article shows how effective public transportation can boost economic opportunities for women in Middle East and North Africa. Moving to the Europe and Central Asia region offers a perspective of how improved roads influence jobs in rural Armenia. Travelling to Pakistan, authors discuss how to accelerate electric mobility adoption. The final article shows how an economic corridor approach to harness lithium could transform Argentina’s northwest.Publication Making Procurement Work Better – An Evaluation of the World Bank’s Procurement System(Washington, DC: World Bank, 2024-12-06)This evaluation assesses the results, successes, and challenges of the World Bank 2016 procurement reform. Procurements acquire the works, goods, and services necessary to achieve the World Bank’s project development outcomes. The World Bank’s procurement processes must ensure that clients get the best value for every development dollar. In 2016, the World Bank reformed its procurement system for Investment Project Financing and launched a new procurement framework aimed at enhancing the Bank’s development effectiveness through better procurement. The reform sought to reduce procurement bottlenecks impeding project performance and modernize procurement systems. It emphasized cutting edge international good practice principles and was intended to be accompanied by procurement capacity strengthening to help client countries. This evaluation offers three recommendations to scale up reform implementation and enhance portfolio and project performance: (i) Improve change management support for the reform’s implementation. (ii) Strategically strengthen country-level procurement capacity. (iii) Consistently manage the full spectrum of procurement risks to maximize project success.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.