Theoretical and Applied Economics
No. 4 / 2021 (629), Winter
Non-linear effect of public debt on economic growth: The case of Tunisia
University of Tunis, Tunisia
Ghazi BOULILA
University of Tunis, Tunisia
Abstract. This study examines the non-linear effect of public debt on economic growth in Tunisia, making use of the autoregressive distributed lag (ARDL) approach and annual time series data covering the period 1986 to 2019. The results show that public debt has a double impact on economic growth in the long run, which confirms the existence of a non-linear relationship between the two variables in the long run. Thus, they indicate that public debt stimulates growth before contradicting it when it exceeds a certain critical threshold. Indeed, the estimated optimal public debt threshold is 64.4% of GDP. Although the impact of public debt on short-term economic growth is statistically insignificant, this implies that the debt-growth relationship in the short term does not follow a non-linear pattern.
Keywords: non-linear, public debt, economic growth, ARDL.
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Contents
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- Public service delivery dilemma
and economic growth challenges in the MENA Region
Siham MATALLAH
Lahouari BENLAHCENE
- Hidden Markov Model using transaction patterns
for ATM card fraud detection
E.B. NKEMNOLE
A.A. AKINSETE
- Productivity growth in Chinese cities:
The agglomeration effect
for cross-regional industrial structures
Yuanjun GE
Fa-Hsiang CHANG
- Time-varying volatility spillover of foreign exchange rate
in three Asian markets:
Based on DCC-GARCH approach
Mohini GUPTA
Purwa SRIVASTAVA
Amritkant MISHRA
Malayaranjan SAHOO
- Non-linear effect of public debt on economic growth:
The case of Tunisia
Ahmed MAAROUFI
Ghazi BOULILA
- Application of single Sharpe index on the optimal portfolio
construction using Indian blue-chip stocks
Debajit RABHA
Rajkumar Giridhari SINGH
- Budget policy, economic cycle and debt in the West African
Economic and Monetary Union (WAEMU) countries:
Empirical evidence based on a regime change model
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- The impact of government spending on the economic growth
of a sample of developing countries using panel data
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- The evolution of consumer prices –
the main brake on economic growth
Constantin ANGHELACHE
Mădălina-Gabriela ANGHEL
Ștefan Virgil IACOB
- Analysis of income inequalities
in the pre-pandemic COVID-19 period
Amalia CRISTESCU
Larisa STĂNILĂ
Eva MILITARU
