Advances in Economics and Business Vol. 4(11), pp. 584 - 590
DOI: 10.13189/aeb.2016.041105
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Public Debt and Economic Growth in Tunisia: A Re-examination


Riadh Brini 1, Hatem Jemmali 2,*, Arafet Ferroukh 1
1 Faculty of Economic Sciences and Management of Nabeul, University of Carthage, Tunisia
2 Faculty of Economic Sciences and Management of Sousse, University of Sousse, Tunisia

ABSTRACT

The aim of this paper is to examine the impact of public debt on economic growth in Tunisia over a period spanning around two decades (1990-2013). Using the Autoregressive distributed lag model (ARDL), the paper traces a long run equilibrium between public debt and economic growth. Besides, we used the Granger causality test to examine the direction of causality among various variables. The results show that public debt and total debt service have a negative and significant effect on economic growth in the long run. In the short and long run there is a unidirectional Granger causality between public debt and economic growth. We also find that there is a bidirectional Granger causality between total debt service and economic growth in the long run. While, there is no evidence of short run causality.

KEYWORDS
Public Debt, Total Debt Service, Economic Growth, ARDL

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Riadh Brini , Hatem Jemmali , Arafet Ferroukh , "Public Debt and Economic Growth in Tunisia: A Re-examination," Advances in Economics and Business, Vol. 4, No. 11, pp. 584 - 590, 2016. DOI: 10.13189/aeb.2016.041105.

(b). APA Format:
Riadh Brini , Hatem Jemmali , Arafet Ferroukh (2016). Public Debt and Economic Growth in Tunisia: A Re-examination. Advances in Economics and Business, 4(11), 584 - 590. DOI: 10.13189/aeb.2016.041105.