External Debt and Economic Growth in Tunisia

Samir Abdelhafidh ()

Panoeconomicus, 2014, vol. 61, issue 6, 669-689

Abstract: This paper investigates the external debt effect on economic growth in Tunisia. Our empirical methodology is based on the autoregressive distributed lag approach. We find that in the long- as well as in the short-run, external debt had a negative effect on growth over the 1970-2010 period. The long- run effect was slightly higher in the period before the Ben Ali’s presidency than in the period after. However, during his period, the external debt short-run effect was the double of that observed during the period before. These results suggest that an external debt reduction should favor economic growth in Tunisia. Key words: External debt, Economic growth, ARDL, Tunisia.JEL: C32, E21, F43, O55.

Keywords: External debt; Economic growth; ARDL; Tunisia (search for similar items in EconPapers)
Date: 2014
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