Short and long-run determinants of inflation in Tunisia

Wissem Boukraine

MPRA Paper from University Library of Munich, Germany

Abstract: The depreciation of the national currency, the higher wage costs passed on to prices and the growing external debt, has characterized the Tunisian economy for almost a decade. In this context we investigate its inflation dynamics to understand which variables affects it in the short and the long run. We apply the Autoregressive Distributed-lagged model over quarterly data from 2010 to 2019 alongside the bound testing approach. Our results suggest a significant impact of external debt and loans on inflation in the short and long run, while GDP growth affects inflation only in the long run.

Keywords: Inflation; ARDL; Tunisia (search for similar items in EconPapers)
JEL-codes: C01 E31 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-ara, nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:102014

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