Structural transformation in Egypt, Morocco and Tunisia : patterns, drivers and constraints

Abstract EN

This paper conducts an analysis of the structural transformation in three MENA countries, Tunisia, Morocco and Egypt over a long time span (1960-2010).

We examine labor productivity evolution and structural change (SC) contribution to productivity growth over different sub-periods.

We analyze the contribution of the different economic sectors to the aggregate SC in the three countries.

An econometric analysis is also performed to identify the main factors underlying the intensity and the pattern of structural change.

Results suggest that the three countries initiated and achieved some progress in the structural transformation over the 1970’s, 1980’s and early 1990’s.

However, this process has stagnated at low levels of income and has remained unfinished.

Deindustrialization occurred at an early stage of development in the three countries, in contrast to what has been noticed in developed and emergent countries.