All in the Family : State Capture in Tunisia

This paper examines the relationship between regulation and the business interests of President Ben Ali and his family, using firm-level data from Tunisia for 1994-2010. Data on investment regulations are merged with balance sheet and firm-level ce...

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Main Authors:	Rijkers, Bob, Freund, Caroline, Nucifora, Antonio
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING AFFILIATED ORGANIZATIONS AIR AIR TRANSPORT AIRLINE INDUSTRY AUTHORIZATION REQUIREMENT AUTHORIZATION REQUIREMENTS AUTOMOBILE AUTOMOBILES BAILOUTS BALANCE SHEET BALANCE SHEET INFORMATION BANK ACCOUNTS BANK POLICY BARRIERS TO ENTRY BUSINESS COMMUNITY BUSINESS REGULATIONS CAPITAL CONTROLS CAPITAL INTENSITY CAPITAL STOCK CAR CARS CHECKS COMPANY COMPETITORS DEVELOPING COUNTRIES DIVIDEND DRIVING DUMMY VARIABLE DUMMY VARIABLES ECONOMIC PERFORMANCE EMPLOYMENT ENTREPRENEURS ENTREPRENEURSHIP ENVIRONMENTAL PROTECTION EQUIPMENT FACE VALUE FINANCIAL SERVICES FIRM PERFORMANCE FIRM SIZE FIRMS FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN EQUITY FOREIGN FIRMS FOREIGN FUNDS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP GOVERNMENT INTERVENTION GROWTH RATES INCOME INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INTERNATIONAL TRANSPORT INVESTMENT CODE INVESTMENT INCENTIVES INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PROMOTION INVESTMENT REGULATION INVESTMENT REGULATIONS INVESTMENT RESTRICTIONS IPO LEVEL PLAYING FIELD LICENSING MARITIME TRANSPORT MARKET ACCESS MARKET CONCENTRATION MARKET FAILURE MARKET FAILURES MARKET PLAYERS MARKET SHARE MARKET SHARES MARKET STRUCTURE MARKET VALUE MINISTRY OF TRANSPORT MONETARY FUND MONEY LAUNDERING MONOPOLY OUTPUT POLITICAL ECONOMY PORTFOLIO POSITIVE COEFFICIENT PREFERENTIAL ACCESS PRIVATE SCHOOL PROFIT MARGINS PROFITABILITY RAILROAD RAILWAY RAPID GROWTH REAL ESTATE REGISTRATION REQUIREMENTS REGULATORY REQUIREMENTS REGULATORY RESTRICTIONS RENTS RESTRICTIONS ON ENTRY ROAD TRANSPORT ROADS RULE OF LAW SME SME DEVELOPMENT STARTUP STATE CAPTURE STOCK MARKET STOCK MARKET CAPITALIZATION STOCK PORTFOLIOS TAX TAX BREAKS TAX DEFERRALS TAX RATES TAX REGIME TAXATION TAXIS TELECOMMUNICATIONS TRANSFER OF OWNERSHIP TRANSPORTS TRUE TURNOVER VEHICLE WAREHOUSES WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2014/03/19291754/all-family-state-capture-tunisia http://hdl.handle.net/10986/17726

id	okr-10986-17726
recordtype	oai_dc
spelling	okr-10986-177262021-06-14T10:21:28Z All in the Family : State Capture in Tunisia Rijkers, Bob Freund, Caroline Nucifora, Antonio ACCOUNTING AFFILIATED ORGANIZATIONS AIR AIR TRANSPORT AIRLINE INDUSTRY AUTHORIZATION REQUIREMENT AUTHORIZATION REQUIREMENTS AUTOMOBILE AUTOMOBILES BAILOUTS BALANCE SHEET BALANCE SHEET INFORMATION BANK ACCOUNTS BANK POLICY BARRIERS TO ENTRY BUSINESS COMMUNITY BUSINESS REGULATIONS CAPITAL CONTROLS CAPITAL INTENSITY CAPITAL STOCK CAR CARS CHECKS COMPANY COMPETITORS DEVELOPING COUNTRIES DIVIDEND DRIVING DUMMY VARIABLE DUMMY VARIABLES ECONOMIC PERFORMANCE EMPLOYMENT ENTREPRENEURS ENTREPRENEURSHIP ENVIRONMENTAL PROTECTION EQUIPMENT FACE VALUE FINANCIAL SERVICES FIRM PERFORMANCE FIRM SIZE FIRMS FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN EQUITY FOREIGN FIRMS FOREIGN FUNDS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP GOVERNMENT INTERVENTION GROWTH RATES INCOME INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INTERNATIONAL TRANSPORT INVESTMENT CODE INVESTMENT INCENTIVES INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PROMOTION INVESTMENT REGULATION INVESTMENT REGULATIONS INVESTMENT RESTRICTIONS IPO LEVEL PLAYING FIELD LICENSING MARITIME TRANSPORT MARKET ACCESS MARKET CONCENTRATION MARKET FAILURE MARKET FAILURES MARKET PLAYERS MARKET SHARE MARKET SHARES MARKET STRUCTURE MARKET VALUE MINISTRY OF TRANSPORT MONETARY FUND MONEY LAUNDERING MONOPOLY OUTPUT POLITICAL ECONOMY PORTFOLIO POSITIVE COEFFICIENT PREFERENTIAL ACCESS PRIVATE SCHOOL PROFIT MARGINS PROFITABILITY RAILROAD RAILWAY RAPID GROWTH REAL ESTATE REGISTRATION REQUIREMENTS REGULATORY REQUIREMENTS REGULATORY RESTRICTIONS RENTS RESTRICTIONS ON ENTRY ROAD TRANSPORT ROADS RULE OF LAW SME SME DEVELOPMENT STARTUP STATE CAPTURE STOCK MARKET STOCK MARKET CAPITALIZATION STOCK PORTFOLIOS TAX TAX BREAKS TAX DEFERRALS TAX RATES TAX REGIME TAXATION TAXIS TELECOMMUNICATIONS TRANSFER OF OWNERSHIP TRANSPORTS TRUE TURNOVER VEHICLE WAREHOUSES WEALTH This paper examines the relationship between regulation and the business interests of President Ben Ali and his family, using firm-level data from Tunisia for 1994-2010. Data on investment regulations are merged with balance sheet and firm-level census data in which 220 firms owned by the Ben Ali family are identified. These connected firms outperform their competitors in terms of employment, output, market share, profits, and growth and sectors in which they are active are disproportionately subject to authorization requirements and restriction on foreign direct investment. Consistent with theories of capture, performance differences between connected firms and their peers are significantly larger in highly regulated sectors. In addition, the introduction of new foreign direct investment restrictions and authorization requirements in narrowly defined five-digit sectors is correlated with the presence of connected firms and with their startup, suggesting that regulation is endogenous to state capture. The evidence implies that Tunisia's industrial policy was used as a vehicle for rent creation for the president and his family. 2014-04-10T19:52:23Z 2014-04-10T19:52:23Z 2014-03 http://documents.worldbank.org/curated/en/2014/03/19291754/all-family-state-capture-tunisia http://hdl.handle.net/10986/17726 English en_US Policy Research Working Paper;No. 6810 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Middle East and North Africa Tunisia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTING AFFILIATED ORGANIZATIONS AIR AIR TRANSPORT AIRLINE INDUSTRY AUTHORIZATION REQUIREMENT AUTHORIZATION REQUIREMENTS AUTOMOBILE AUTOMOBILES BAILOUTS BALANCE SHEET BALANCE SHEET INFORMATION BANK ACCOUNTS BANK POLICY BARRIERS TO ENTRY BUSINESS COMMUNITY BUSINESS REGULATIONS CAPITAL CONTROLS CAPITAL INTENSITY CAPITAL STOCK CAR CARS CHECKS COMPANY COMPETITORS DEVELOPING COUNTRIES DIVIDEND DRIVING DUMMY VARIABLE DUMMY VARIABLES ECONOMIC PERFORMANCE EMPLOYMENT ENTREPRENEURS ENTREPRENEURSHIP ENVIRONMENTAL PROTECTION EQUIPMENT FACE VALUE FINANCIAL SERVICES FIRM PERFORMANCE FIRM SIZE FIRMS FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN EQUITY FOREIGN FIRMS FOREIGN FUNDS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP GOVERNMENT INTERVENTION GROWTH RATES INCOME INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INTERNATIONAL TRANSPORT INVESTMENT CODE INVESTMENT INCENTIVES INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PROMOTION INVESTMENT REGULATION INVESTMENT REGULATIONS INVESTMENT RESTRICTIONS IPO LEVEL PLAYING FIELD LICENSING MARITIME TRANSPORT MARKET ACCESS MARKET CONCENTRATION MARKET FAILURE MARKET FAILURES MARKET PLAYERS MARKET SHARE MARKET SHARES MARKET STRUCTURE MARKET VALUE MINISTRY OF TRANSPORT MONETARY FUND MONEY LAUNDERING MONOPOLY OUTPUT POLITICAL ECONOMY PORTFOLIO POSITIVE COEFFICIENT PREFERENTIAL ACCESS PRIVATE SCHOOL PROFIT MARGINS PROFITABILITY RAILROAD RAILWAY RAPID GROWTH REAL ESTATE REGISTRATION REQUIREMENTS REGULATORY REQUIREMENTS REGULATORY RESTRICTIONS RENTS RESTRICTIONS ON ENTRY ROAD TRANSPORT ROADS RULE OF LAW SME SME DEVELOPMENT STARTUP STATE CAPTURE STOCK MARKET STOCK MARKET CAPITALIZATION STOCK PORTFOLIOS TAX TAX BREAKS TAX DEFERRALS TAX RATES TAX REGIME TAXATION TAXIS TELECOMMUNICATIONS TRANSFER OF OWNERSHIP TRANSPORTS TRUE TURNOVER VEHICLE WAREHOUSES WEALTH
spellingShingle	ACCOUNTING AFFILIATED ORGANIZATIONS AIR AIR TRANSPORT AIRLINE INDUSTRY AUTHORIZATION REQUIREMENT AUTHORIZATION REQUIREMENTS AUTOMOBILE AUTOMOBILES BAILOUTS BALANCE SHEET BALANCE SHEET INFORMATION BANK ACCOUNTS BANK POLICY BARRIERS TO ENTRY BUSINESS COMMUNITY BUSINESS REGULATIONS CAPITAL CONTROLS CAPITAL INTENSITY CAPITAL STOCK CAR CARS CHECKS COMPANY COMPETITORS DEVELOPING COUNTRIES DIVIDEND DRIVING DUMMY VARIABLE DUMMY VARIABLES ECONOMIC PERFORMANCE EMPLOYMENT ENTREPRENEURS ENTREPRENEURSHIP ENVIRONMENTAL PROTECTION EQUIPMENT FACE VALUE FINANCIAL SERVICES FIRM PERFORMANCE FIRM SIZE FIRMS FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN EQUITY FOREIGN FIRMS FOREIGN FUNDS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP GOVERNMENT INTERVENTION GROWTH RATES INCOME INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INTERNATIONAL TRANSPORT INVESTMENT CODE INVESTMENT INCENTIVES INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PROMOTION INVESTMENT REGULATION INVESTMENT REGULATIONS INVESTMENT RESTRICTIONS IPO LEVEL PLAYING FIELD LICENSING MARITIME TRANSPORT MARKET ACCESS MARKET CONCENTRATION MARKET FAILURE MARKET FAILURES MARKET PLAYERS MARKET SHARE MARKET SHARES MARKET STRUCTURE MARKET VALUE MINISTRY OF TRANSPORT MONETARY FUND MONEY LAUNDERING MONOPOLY OUTPUT POLITICAL ECONOMY PORTFOLIO POSITIVE COEFFICIENT PREFERENTIAL ACCESS PRIVATE SCHOOL PROFIT MARGINS PROFITABILITY RAILROAD RAILWAY RAPID GROWTH REAL ESTATE REGISTRATION REQUIREMENTS REGULATORY REQUIREMENTS REGULATORY RESTRICTIONS RENTS RESTRICTIONS ON ENTRY ROAD TRANSPORT ROADS RULE OF LAW SME SME DEVELOPMENT STARTUP STATE CAPTURE STOCK MARKET STOCK MARKET CAPITALIZATION STOCK PORTFOLIOS TAX TAX BREAKS TAX DEFERRALS TAX RATES TAX REGIME TAXATION TAXIS TELECOMMUNICATIONS TRANSFER OF OWNERSHIP TRANSPORTS TRUE TURNOVER VEHICLE WAREHOUSES WEALTH Rijkers, Bob Freund, Caroline Nucifora, Antonio All in the Family : State Capture in Tunisia
geographic_facet	Middle East and North Africa Tunisia
relation	Policy Research Working Paper;No. 6810
description	This paper examines the relationship between regulation and the business interests of President Ben Ali and his family, using firm-level data from Tunisia for 1994-2010. Data on investment regulations are merged with balance sheet and firm-level census data in which 220 firms owned by the Ben Ali family are identified. These connected firms outperform their competitors in terms of employment, output, market share, profits, and growth and sectors in which they are active are disproportionately subject to authorization requirements and restriction on foreign direct investment. Consistent with theories of capture, performance differences between connected firms and their peers are significantly larger in highly regulated sectors. In addition, the introduction of new foreign direct investment restrictions and authorization requirements in narrowly defined five-digit sectors is correlated with the presence of connected firms and with their startup, suggesting that regulation is endogenous to state capture. The evidence implies that Tunisia's industrial policy was used as a vehicle for rent creation for the president and his family.
format	Publications & Research :: Policy Research Working Paper
author	Rijkers, Bob Freund, Caroline Nucifora, Antonio
author_facet	Rijkers, Bob Freund, Caroline Nucifora, Antonio
author_sort	Rijkers, Bob
title	All in the Family : State Capture in Tunisia
title_short	All in the Family : State Capture in Tunisia
title_full	All in the Family : State Capture in Tunisia
title_fullStr	All in the Family : State Capture in Tunisia
title_full_unstemmed	All in the Family : State Capture in Tunisia
title_sort	all in the family : state capture in tunisia
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/03/19291754/all-family-state-capture-tunisia http://hdl.handle.net/10986/17726
_version_	1764438195821346816

All in the Family : State Capture in Tunisia

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