The Microeconomic Impact of Political Instability: Firm‐Level Evidence from Tunisia

30 Pages Posted: 25 Oct 2018

See all articles by Samer Matta

Samer Matta

World Bank

Simon Appleton

University of Nottingham - School of Economics

Michael Bleaney

University of Nottingham - School of Economics

Date Written: November 2018

Abstract

This paper explores the impact of political instability on firms in the context of Tunisia, which experienced a surge in political instability events after the 2011 Jasmine revolution. Using a new dataset, we show that political instability was a major concern for small and exporting firms as well as those that were operating in the tourism sector, those that suffered from acts of vandalism or arson, and those that were located in the interior region of Tunisia. More importantly, we find strong evidence that political instability was the most damaging constraint to firm growth in Tunisia after the Arab Spring.

Suggested Citation

Matta, Samer and Appleton, Simon and Bleaney, Michael, The Microeconomic Impact of Political Instability: Firm‐Level Evidence from Tunisia (November 2018). Review of Development Economics, Vol. 22, Issue 4, pp. 1590-1619, 2018, Available at SSRN: https://ssrn.com/abstract=3272410 or http://dx.doi.org/10.1111/rode.12388

Samer Matta (Contact Author)

World Bank ( email )

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Washington, DC 20433
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Simon Appleton

University of Nottingham - School of Economics ( email )

University Park
Nottingham NG7 2RD
United Kingdom

Michael Bleaney

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom
+44 0 115 951 5265 (Phone)
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