This study deepens the understanding of the relationship between entrepreneurship and national well-being by adopting Amartya Sen's capability approach, a fundamental and enlightening conceptual framework. It highlights the crucial distinction between opportunity entrepreneurship and necessity entrepreneurship by evaluating their respective effects on various dimensions of well-being. More specifically, this research rigorously analyzes how these two types of entrepreneurship influence national well-being, focusing on both disaggregated dimensions (standard of living and quality of life) and an aggregate measure of overall well-being and using a sample of 30 developing countries from 2004 to 2018 and the Generalized Method of Moments (GMM). The results reveal that opportunity entrepreneurship significantly improves both standards of living and quality of life, underscoring its positive contribution to societal well-being. In contrast, necessity entrepreneurship is associated with a reduced standard of living and has no statistically significant effect on quality of life. By clarifying the distinct roles of these two types of entrepreneurship at the national level, this study provides valuable insights for policymakers, enabling them to design targeted interventions that promote opportunity entrepreneurship while addressing the negative effects of necessity entrepreneurship. This novel contribution expands the understanding of national prosperity, going beyond traditional economic indicators to encompass broader measures of well-being.

This article investigates the role of different types of entrepreneurship (opportunity and necessity) in advancing multidimensional human well-being, specifically in achieving Sustainable Development Goal 3 (SDG 3) in 30 developing countries. Using the system Generalized Method of Moments model, we examine how political, economic, and institutional governance influences the impact of both entrepreneurial behaviors on living standards and quality of life. Findings reveal that opportunity entrepreneurship positively contributes to well-being by enhancing living standards and quality of life, while necessity entrepreneurship shows a weaker or negative effect. Good governance strengthens the positive relationship between opportunity entrepreneurship and well-being but moderates the impact of necessity entrepreneurship, suggesting a threshold where necessity-driven entrepreneurship can also contribute to well-being under strong governance. These results highlight the critical role of effective governance in maximizing the benefits of entrepreneurship for human well-being. The study emphasizes the need for policies that support governance improvements, encourage opportunity-driven entrepreneurship, and provide safeguards for necessity entrepreneurs, ultimately contributing to enhanced well-being and progress toward SDG 3 in developing countries.

As digitization and national governance are widely recognized for access to external finance, this article examines the combined effects of digitization, in particular information and communication technologies (ICTs) diffusion in terms of access, skills, and use, and the quality of governance on international capital flows (foreign direct investment [FDI] and remittances) in 41 subSaharan African (SSA) countries. Using the Generalized Method of Moments, the study demonstrates that stronger political and institutional governance is associated with higher FDI and remittances. Moreover, improved access to, skills in, and use of ICT contribute to increased FDI and remittances. The effectiveness of political and institutional governance mechanisms in attracting FDI is further enhanced when they are accompanied by increased use of and access to ICT. Similarly, the positive impact of good political governance on remittances is reinforced by improved access to ICT. Overall, the results underline that as ICT becomes more widely used in SSA countries, improving governance quality and digital development capacity can generate a synergistic effect that attracts higher volumes of FDI and remittances to these economies.

Abstract The paper analyzes the economic impact of the gradual removal of the subsidy in the bakery sector in Tunisia. A partial equilibrium model under imperfect competition in the soft wheat market is developed to evaluate the impact of the gradual removal of the subsidy in the Tunisian bakery sector. Two scenarios are simulated. In the first scenario, the subsidy is eliminated over a three years, starting in 2024. Scenario 2 mirrors scenario 1, but assumes a 5 % annual increase in the world price of soft wheat from 2024 to 2026, accounting for the anticipated depreciation of the Tunisian currency. The results show that the overall welfare would increase under both scenarios 1 and 2, and range between 443.9 and 472.2 million dinars by 2026, respectively. Based on the results of the simulations, to mitigate the negative impact of subsidy removal, it is strongly recommended to extend the food subsidy reform to a five-year period, prioritizing the protection of low-income segments. In addition, abolishing the Cereal Board’s regulatory role and moving to a competitive farm-level market would enhance competition, attract investment, and improve productivity and efficiency. However, a new cereal policy should be implemented to achieve objectives of food security, improved productivity, sustainability, and resilience.

Based on the eclectic theory of entrepreneurship (ETE), this study seeks to understand the general environmental factors that impact opportunity and necessity entrepreneurship. The ETE identifies four key categories of factors that contribute to national entrepreneurship rates: economic opportunities, resources and capacities, governance quality, and culture. To analyse these factors, we performed a PLS-SEM analysis on data from 30 developing countries taken from the period 2005 to 2018. Through such analysis our findings provide insight into how factors are linked to different categories of behaviors that arise from such factors’ categorization. More precisely, our findings reveal that economic opportunities (economic development, ICT use, economic integration, and financial development), resources and abilities (income level, education, and unemployment), and governance quality (business regulations and general governance) are important factors influencing opportunity entrepreneurship and dissuading necessity entrepreneurship. Conversely, cultural factors (uncertainty avoidance and individualism/collectivism) increase necessity entrepreneurship and restrain opportunity entrepreneurship. Particularly, governance quality not only acts as an opportunity catalyst but also an economic opportunity mediator, which is an inhibitor for opportunity and necessity entrepreneurship. Moreover, an indirect impact on opportunity (necessity) entrepreneurship is through the resources and abilities offered due to the economic opportunities. Our study provides implications for management practices and public policy.

Achieving the Sustainable Development Goals (SDGs) in developing economies, especially in sub-Saharan Africa (SSA), has become a focal point of discussion. This study contributes to this discourse by investigating the effects of international capital flows on SDGs in SSA, with a specific focus on the moderating mechanisms that influence these effects. Using data from 41 SSA countries spanning 2000 to 2018, the findings emphasize the crucial role of governance quality and ICT diffusion as effective factors moderating the nexus between international capital flows and SDGs. The study reveals a nuanced impact of international capital flows on sustainable development, encompassing both positive and negative effects across economic, social, and environmental dimensions. However, the presence of good governance practices and widespread diffusion of information and communication technologies (ICTs) serves as crucial conditional factors, enhancing the positive effects of international capital flows on economic and social sustainability while simultaneously mitigating their potential adverse effects on environmental sustainability. Through improvements in governance structures and the promotion of ICT diffusion, policymakers can create an environment conductive to maximizing the benefits of international capital flows while minimizing their adverse repercussions, thereby fostering sustainable development in sub-Saharan Africa.

This study investigates the role of international capital flows in financing the Sustainable Development Goals (SDGs) in Sub-Saharan Africa (SSA). Using data from 41 SSA countries from 2000 to 2018 and employing the System Generalized Method of Moments (System GMM), the research examines the impact of Foreign Direct Investment (FDI) and remittances on the SDGs across disaggregated levels (economic, social, and environmental sustainability) and the aggregated level (SDGI). The findings underscore the crucial significance of international capital flows as essential financing sources for SSA countries. FDI emerges as a contributor to economic and social sustainability at the disaggregated level, yet it exhibits negative effects on environmental sustainability. Conversely, remittances are shown to positively contribute to economic and social sustainability at the disaggregated level. However, the impact of international capital flows on the aggregate SDGI is found to be insignificantly positive. These results highlight the necessity for policymakers in SSA to devise strategies that maximize the benefits of FDI while addressing its adverse effects on environmental sustainability. Furthermore, they emphasize the importance of strengthening policies aimed at directing remittances towards sustainable investments, thereby advancing the achievement of the SDGs. Governments are urged to prioritize enhancing regulatory capacities in environmental matters through investments in modern technologies and appropriate standards, aiming to strike a balance between environmental protection and economic needs. Additionally, they should prioritize transparency, public participation, and robust enforcement mechanisms. Encouraging environmentally friendly foreign investments and promoting regional and international cooperation are also crucial steps towards effectively managing local environmental challenges.

The marketing of the Tunisian sugar industry is evolving under government budget pressures. This article sets out to evaluate the impacts of subsidy reforms in the Tunisian sugar industry using a linear-quadratic storage model. Pricing mechanisms and decisions to import and sell sugar are modeled using a partial equilibrium model. The resolution of the model allows us to determine the decision rules of imports of white sugar and those of brown sugar as well as sales according to their own lagged values, lagged variables of storage, and lagged prices. The null hypothesis of the absence of the role of storage in the decision rules is rejected. The structural parameters of the system of equations are estimated using the generalized method of moments. These parameters are, then, used to simulate the impacts of reforming the sugar pricing mechanisms. An econometric simulation exercise was carried out to study the different scenarios of the upward pricing of sugar, due to a gradual elimination of the subsidy. The simulation reveals that an increase in the selling price leads to a slight variation in the level of sugar imports and production. This is explained by the existence of the quadratic adjustment cost of imports and the inelastic demand for sugar in Tunisia. A rationalization of sugar consumption by Tunisian citizens and an encouragement of companies to refine activity are then imposed at this level. Indeed, a drop in consumption would reduce the difficulties in the sugar market in Tunisia. The Tunisian Office of Trade would import less and therefore reduce its costs and losses.

Abstract The Tunisian olive oil strategy is based on the development of exports. Extension and modernization measures of Tunisian olivegrove have come into effect these recent years in order to increase the exports and diversify the target markets. Like any other agricultural good, olive oil is subject to world price fluctuations. Forecasting the long-term world price of olive oil is essential both as a decision-making tool and as a strategic factor for the development of the sector. This paper attempts to forecast the long-term olive oil world price using annual time series. The data reveals that the number of observations is too restrictive for a frequentist approach. To overcome the sample shortage, we adopt a Bayesian VAR. We use the hierarchical prior selection to specify the prior parameters. The results show an increase in world price and production. However, the price grows more proportionally than the production. In such a context, the increasing production orientation seems adequate but not sufficient to enhance the Tunisian position on the international olive oil market. For the coming decade, the Tunisian olive oil policy should focus as well on deepening the dynamics of product valorization.

This article analyses management of hydropower dams within monopolistic and oligopolistic competition and when hydroelectricity producers are risk averse and face demand uncertainty. In each type of market structure we analytically determine the water release path at the closed-loop equilibrium. In the monopolistic case, we demonstrate that intertemporal allocation of hydro resources is done by additional pumping or storage depending on the relative abundance of water between different regions in order both to internalize the risk and to smooth the effect of uncertainty on electricity prices. In the oligopolistic case, we determine the conditions under which the relative scarcity (abundance) of water in the dam of a hydroelectric operator can favor additional strategic pumping (storage) in its competitor’s dams. Finally, we compare the effects of risk aversion on the output industry. We show, in monopolistic case, that the greater the generators’ risk aversion the larger the current water storage for future demands. In the oligopolistic case, however, the risk aversion increasing may be either in favor of reducing or increasing the total hydro output depending on demand uncertainty and market power parameters. We deduce that risk aversion coupled with market power may induce, under some condition, a misallocation of hydraulic resource across time.

The objective of this paper is to assess the impact of services liberalisation on the Tunisian economy in the context of a Deep and Comprehensive Free Trade Agreement with the European Union. An intertemporal dynamic CGE model with perfect foresight is developed to compare some alternative trade policy simulations. The main findings of this study are that freeing up service sectors induces small welfare gains and entails a significant decrease in the unemployment rate; whereas, the effect on the labour demand is fairly small. Moreover, lowering NTMs in services has a positive impact on the level of imports from the European Union countries. The growth of imported services is less important when assuming further liberalisation of investment. The simulations results reveal also that the impact of services liberalisation on production and exports depends essentially on the initial level of NTMs for these services.

In this paper, we analyze the effect of an environmental policy targeting the enhancement of ecosystem integrity as well as air quality in the wholesale electricity market. We develop a dynamic Cournot game featuring two risk-averse electricity producers – one hydro and one thermal – under demand uncertainty. We demonstrate that while improving air quality necessarily raises the market price, enhancing ecosystem integrity can, under the water-abundance hypothesis, reduce it. Moreover, in order to establish a statement about the environmental policy’s efficiency, we examine interactions between these environmental measures and their potential side effects. We show that prioritizing a natural flow regime minimizes the taxation efficiency of lowering air pollution and emphasizes the price rise due to taxation. Nevertheless, the effect of the taxation policy on the efficiency of the ecosystem integrity policy depends on the hydro producer’s ability to substitute thermal units. In order to establish a precise environmental statement, regulation authorities need to compare, using appropriate criteria, the importance of an avoided unit of surrounding ecosystem alteration with the importance of an avoided unit of air-polluting production in the functioning of the whole ecosystem.

Purpose The purpose of this paper is to develop a partial equilibrium model for the Tunisian dairy sector according to "quantity formulation" and "price formulation" and to show their equivalence under the assumption of perfect competition. Design/methodology/approach This model incorporates domestic policies, that is, producers' price support and subsidies to milk collection centres and trade policies, that is, TRQ and ad valorem tariffs. The authors illustrate theoretically and numerically how to incorporate the minimum price policy at the farm level for the Tunisian dairy sector according to the price formulation approach. Findings Two scenarios for the removal of a minimum price policy are analysed and show that producers' surplus loss varies between 78.6 and 127.8 million dinars. The overall welfare implications of removing a minimum price policy are negative and range between 13.3 and 18.2 million dinars. Research limitations/implications - This study could not include all of the detailed factors in the Tunisian dairy sector. Originality/value Based on the numerical results obtained in the study, the authors recommend that public authorities maintain the minimum price policy because it prevents a decrease in raw milk producers' surplus. Moreover, this policy is effective because it generates excess raw milk production, estimated at 28.23% in 2010, that can be used for various homemade dairy products. Under an effective minimum price policy, the formal processing sector absorbs all the excess raw milk only if the public authorities allocate grants to encourage investment in new milk collection centres and in milk drying equipment, especially in disadvantaged rural regions. The latter economic policy coupled with a minimum price policy not only guarantees a higher income for raw milk producers but also may represent a development factor for underprivileged rural areas.

The objective of this paper is to analyze trade potential versus actual realized trade among North African trading partners. Following the literature on production economics, we built a stochastic frontier gravity model. The underlying assumption is that all deviation from trade potential is not due to white noise but could also be due to inefficiencies. Time-variant country-specific trade efficiency estimates are obtained and analyzed. Our results indicate that Mauritania as a country of destination and of origin is where the trading relationship is the least efficient. Conversely, Tunisia, followed by Morocco, faces the fewest ObehindO and ObeyondO the border effects. Our analysis of market integration and trade efficiency at the disaggregated level indicates that trade efficiency scores exhibit high variability between the categories of products. Moreover, North African market integration is worst when considering the goods from the category OTextiles; Footwear & HeadgearO. Our estimates indicate that trade efficiency for agricultural products is relatively low indicating the existence of significant ObehindO and ObeyondO border inefficiencies. Our estimates also point at the presence of poor and counterproductive regulatory environment and underline the importance of improving domestic policies to encourage entrepreneurial development and business facilities. Our findings confirm the need for the North African countries to improve their trade logistics at the national level to enhance trade efficiency and to implement trade facilitation reform programs.

The paper analyzes the impact of import quotas on the welfare of different regions belonging to a single country. The regions compete with one another using Cournot conjectures and international trade is hindered by import quotas. Our results can help the country to determine the optimal import quotas and the best way to allocate import permits between regions. We find three mains results. First, we show how the world price, the difference in production costs between regions and the relative market size determine the allocation of import quotas, the interregional trade and the rent of import permits holders. Second, we show that in the presence of interregional trade in both directions, the region with the largest market size will obtain the largest share of imports while in the absence of trade, the allocation of import permits between regions also depends on the production cost asymmetry. Third, when only the most efficient region exports to the least efficient one, production cost asymmetry, transaction costs and world price determine whether the smaller or larger region obtains the larger share of importations allowed under import quotas.

This article analyses management of hydropower dams within monopolistic and oligopolistic competition and when hydroelectricity producers are risk averse and face demand uncertainty. In each type of market structure we analytically determine the water release path in closed-loop equilibrium. We show how a monopoly can manage its hydropower dams by additional pumping or storage depending on the relative abundance of water between different regions to smooth the effect of uncertainty on electricity prices. In the oligopolistic case with symmetric risk aversion coefficient, we determine the conditions under which the relative scarcity (abundance) of water in the dam of a hydroelectric operator can favor additional strategic pumping (storage) in its competitor’s dams. When there is asymmetry of the risk aversion coefficient, the firm’s hydroelectricity production increases as its competitor’s risk aversion increases, if and only if the average recharge speed of the competitor’s dam exceeds a certain threshold, which is an increasing function of its average water inflows.

In this article, we are interested in the analysis of energy intensity by the Fisher Ideal Index method, a method belonging to the approach of the Index Decomposition Analysis (IDA), in order to highlight the effects which contribute to its reduction. The use of this method allowed us to decompose the variation of energy intensity in Tunisia for the period 1990-2008 into two effects: one effect due to the structural change of the economy and another arising from energy efficiency. We show that the effect of enhancing energy efficiency is the main contributor to the reduction of energy intensity in Tunisia. Indeed, the setting into action of the policy of energy control has improved energy efficiency by allowing reaching a lower level of energy intensity. On the other hand, the effect of structural change through the orientation of the Tunisian economy toward the tertiary sector has also helped to reduce the energy intensity. Keywords: energy intensity; energy efficiency; economic structure; Index Decomposition Analysis (IDA) JEL Classifications: C4; Q4

In this article we propose a bilateral dumping model in which the minimum access level is endogenous. Regions compete with one another using Cournot conjectures and engage in interregional dumping as in Brander and Krugman’s (1983) reciprocal dumping model. International trade is hindered by restrictive Tariff rate Quota (TRQs). The model features two regions and one product. We derive the conditions under which it is optimal to observe interregional trade and those under which trade does not exist. The results show that the world price and the difference in production costs between regions play an important role in determining whether bilateral trade exists. In the presence of bilateral trade, the region with the largest market size will obtain the largest share of import volumes permitted under the minimum access system while in the absence of interregional trade, the distribution of import permits between regions will also depends on the product cost asymmetry. When only the most efficient region exports to the least efficient region, production costs asymmetry, transaction costs and world price level determine whether the smaller or larger region obtains the larger share of product import allowed under minimum access commitment. In all cases, we show that in a country like Canada, creation of “artificial barriers” to interprovincial trade of products under supply management system lowers the welfare of at least one of the regions, along with the global welfare.