Recent tendency in Tunisian industrial firms’ location

Spatial tax regimes and location choices of manufacturing firms: Survey evidence in southern Tunisia

“…Meanwhile, the other group of firms can bear these tax burdens to benefit from agglomeration economies, aligning with the principles of the new economic geography, and as explained by Bilal (2023) and Brülhart and Simpson (2018). These agglomeration economies are also observed in the studies of Driss (2009) andBen Said (2021), where they play a significant role in the manufacturing agglomeration of coastal regions without fiscal advantages. Nevertheless, the coefficients related to other dimensions that can be interpreted as Marshallian externalities are not significant.…”

“…In Tunisia, several articles focus on the determinants of industrial agglomeration (see, e.g., Amara & Thabet, 2012; Ben Said, 2021; Jaouad et al, 2015; Kriaa et al, 2011; Métral, 2003), but few explicitly document the direct relationship between the spatial tax regime and location decisions. Karray and Driss (2009) make significant strides in explaining regional growth and industrial agglomeration mechanisms for the period 2000–2005, highlighting the importance of diversified industrial structures and competitive environments.…”

“…Furthermore, they show that a large and developed market, the existence of zonal tax advantages and public infrastructure can serve as a means of attracting foreign direct investment. Ben Said (2021) examines the regional location determinants of 501 new industrial firms in 153 Tunisian delegations between 2016 and 2019. Their spatial instrumental Tobit model exhibits that the preference for one location over another is influenced by plant location decisions in neighboring areas and that agglomeration economies, land availability and adapted industrial infrastructure are the main location determinants.…”

“…Specifically, this paper identifies the determinants of the location choices of manufacturing firms in areas with spatial fiscal regimes in the southeast of Tunisia. Indeed, the spatial distributions of the manufacturing firms in Tunisia are of considerable empirical interest, especially after the revolution of January 14, 2011 (see, e.g., Amara & Ayadi, 2014;Ayadi & Mattoussi, 2014;Ben Said, 2021;Ben Said & Jamoussi, 2015;Chagour et al, 2023;Laajimi et al, 2020). Using different methodologies, all of these papers show significant strong and persistent inequalities in the spatial distribution of manufacturing industries between coastal and interior regions.…”