Theoretical and Applied Economics
No. 4 / 2016 (609), Winter
Financial liberalization and economic growth: Evidence from Tunisia
University of Tunis El Manar, Tunisia
Abstract. The objective of this paper is to build an index of financial liberalization in Tunisia using the Principal Component Analysis method over a period of 36 years from 1980 to 2015. In addition, this paper also includes econometric estimates terms of cointegration and causality between financial liberalization policy and economic growth in Tunisia. To do this, we adopt a methodology which is based on an analysis in terms of causality. This approach requires passing through three stages. The first step is to check the properties of time series (stationary and integration order) of the financial liberalization index and economic growth through the use of unit root Dickey-Fuller tests. The second step seeks to examine the long-term relationship between the two variables by using a multivariate analysis Johansen. Finally, the third step seeks to determine the direction of causality between the financial liberalization index and economic growth by applying a vector error correction model. The results show that the two series are integrated of order one (I (1)), the existence of a long-term relationship between the financial liberalization index and economic growth and the presence of causality Granger unidirectional of financial liberalization index to economic growth.
Contents
The influence of fiscal freedom, government effectiveness and human development index on tax evasion in the European Union
Limitation of ARIMA models in financial and monetary economics
The Romania's challenges regarding the integration in the Euro Area
Does remittance drive economic growth in emerging economies: Evidence from FMOLS and Panel VECM
Effectiveness of monetary policies in OECD countries
Determinants of household loans
Tourism and economic structural change with endogenous wealth and human capital and elastic labor supply
Migration – trade nexus revisited: Empirical evidence from Turkish emigrants in OECD countries
New pillars of the banking business model or a new model of doing banking?
Effects of R&D and innovation on income in EU countries: new generation panel cointegration and causality analysis
The major economic evolution of Romania by the middle of 2016
Foreign aid, macroeconomic policies and economic growth nexus in India: An ARDL bounds testing approach
Human nature in the economic behavior based on the neoclassical economic model
Determinants of nonperforming assets-bank-specific and macroeconomic factors: A panel data analysis of different group of commercial banks operating in India
Gradualistic strategy of transition to market economy
Financial liberalization and economic growth: Evidence from Tunisia
Public target space as key factor for public policy implementation
The relationships among the returns of investment instruments: a vector autoregressive approach for Turkey
Current account sustainability in SAARC economies: Evidence from combined cointegration approach
Information asymmetry and technical efficiency: Case of a panel of Tunisian insurance companies
FDI and export spillovers using Heckman’s two step approach: Evidence from Turkish manufacturing data