Analysis of Sustainability of Fiscal Policy and Democratic Transition: Case of Tunisia

Zeineb Gouasmi () and Houda Haffoudhi ()
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Zeineb Gouasmi: University of Carthage
Houda Haffoudhi: University of Carthage

Journal of the Knowledge Economy, 2020, vol. 11, issue 2, No 5, 512-529

Abstract: Abstract Since 2011, Tunisia experienced a democratic transition, which upset the economic recovery. So, the main aim of this paper is to assess the sustainability of fiscal policy, considering Tunisia’s main macroeconomic variables. To this end, we applied two studies to analyze this policy over the period from 1970 to 2015. First, in the former study, sustainability was examined by a stationarity and cointegration econometric approach. Then the second study is based on an accounting approach in terms of threshold. The first study showed the non-sustainability of the public debt. This result was confirmed by the second approach. This study showed that the stimulus policy, “go and stop” undertaken by the transition government explains mostly the deterioration of the public debt and the deterioration of the main economic indicators.

Keywords: Fiscal policy; Budget deficit; Sustainability; Democratic transition (search for similar items in EconPapers)
JEL-codes: E62 H12 H68 P3 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s13132-018-0558-5

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