Product Differentiation and Intra-Industrial Trade: Quantitative Assessment in the Case of Tunisia

Abstract

This article tries to analyze the extent of product differentiation in the Tunisian’s context, by relying on an investigation derived at a sufficiently disaggregated level of sectors. In the first section, we tend to expose the relationship between market structure, product differentiation and intra-industrial trade. Then, we reexamine in the second section some operational proxies of products variety that were previously analyzed by the empirical literature. In the third section, we tend to appreciate the strength of products differentiation in the specific case of Tunisia and in 8 different sectors.