Import controls and production in Tunisia during the 1960"s

It discusses (i) Tunisia"s import-substitution strategy and the factors which motivated it, (ii) the effects of this system on the terms of trade between industry and agriculture, and (iii) the structure of effective protection accorded to Tunisia"s industries. The results indicate a bias in favor of production processes oriented toward the Tunisian rather than foreign markets. The manufacturing industries were promoted relative to primary production. There are also wide divergences among rates of effective protection at the product level, and some of the high rates of effective protection represented subsidization of inefficient producers.