The Spatial Distribution of Economic Activities and the Structure of Local Economy: a Spatial Panel Approach

The present study investigates the relationship between industrial sectors and spatial effects at a microgeographic level using Tunisian data over the period 1996–2018. The novelty of this research lies in examining the factors that affect the location of economic activities along with the spatial effects. The spatial panel data models are used to determine the relationship between a range of information which are organized into three determinants. The empirical results helped to identify the agglomeration of industrial activities. Additionally, it highlighted the significant influences of spatial factors in determining the location of economic activities. The study, too, outlines the new components of the Tunisian growth policy that will correct the existing economic inequalities and assist regions that have been less favored by nature and history.