A Quantitative Assessment of Inter-Sectoral Linkages in Tunisia

Abstract

This study offers a nuanced examination of Tunisia’s economic structure through the lens of input-output analysis, emphasizing the significance of inter-sectoral linkages beyond mere contributions to gross domestic product. While traditional assessments often prioritize sectoral output, this research underscores the importance of understanding the interconnected roles that sectors play as enablers of broader economic activity. Utilizing Rasmussen’s (1956) and Watanabe-Chenery’s (1958) methodologies, we analyze the forward and backward linkages among key industries, drawing on 2018 data from the OCDE statistics. Our findings identify the chemical and petroleum sectors, along with mechanical and electrical industries, as the primary drivers within Tunisia’s industrial network. These sectors exhibit strong bidirectional linkages, positioning them as critical engines of growth with the capacity to influence the entire economic system. The analysis also highlights the strategic importance of the agri-food sector, which demonstrates high levels of both demand and supply-side connectivity, underscoring its role as a catalyst for sustainable development and diversification. Conversely, sectors such as machinery, equipment, and construction appear more peripheral, constrained by technological obsolescence and limited integration into supply chains. The results suggest that targeted policy measures aimed at strengthening backward linkages in resource-dependent industries and fostering innovation in manufacturing could significantly enhance economic resilience. Overall, this research advocates for a comprehensive approach to economic development—one that recognizes the vital interdependencies among sectors—and underscores the need for policies that promote technological upgrading and structural diversification in Tunisia’s evolving economy.