The challenges of capital account liberalization in Tunisia (1984–2020): the importance of the institutional dimension

Mahdi Mnasri (), Niazi Kammoun () and Patrick Dieuaide ()
Additional contact information
Mahdi Mnasri: University of Sfax
Niazi Kammoun: University of Sfax
Patrick Dieuaide: Sorbonne Nouvelle University, ICEE-European Studies-EA 2291, Research House

SN Business & Economics, 2025, vol. 5, issue 4, 1-22

Abstract: Abstract This article aims to analyze the impact of the opening of the capital account on economic performance in Tunisia while highlighting the importance of institutional factors. The empirical analysis covers the period from 1984 to 2020 and uses the Autoregressive Distributed Lag (ARDL) method. The results obtained reveal that in the short term, institutional development has a mixed impact on economic growth. On the other hand, in the long term, this impact becomes positive, while the opening of the capital account has a significantly negative effect on growth. Also, we find a bidirectional causality between economic growth and financial openness. These results allow us to deduce that the relationship between these two components could be non-linear and highlight threshold effects in terms of institutional development. This is why the Tunisian authorities must strengthen financial and institutional reforms in order to meet the prerequisites for external financial liberalization in the service of economic growth and employment.

Keywords: Financial openness; Institutional development; Financial development; Economic growth; ARDL model; Tunisia; Ouverture financière; Développement institutionnel; Développement financier; Croissance économique; Modèle ARDL; Tunisie (search for similar items in EconPapers)
JEL-codes: C22 F36 O16 O43 O47 O55 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s43546-025-00805-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:snbeco:v:5:y:2025:i:4:d:10.1007_s43546-025-00805-y

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43546

DOI: 10.1007/s43546-025-00805-y

Access Statistics for this article

SN Business & Economics is currently edited by Gino D'Oca

More articles in SN Business & Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().