IDEAS home Printed from https://ideas.repec.org/a/agr/journl/v4(613)y2017i4(613)p161-168.html
   My bibliography  Save this article

Macroeconomic determinants of public debt growth: A case study for Tunisia

Author

Listed:
  • Samia OMRANE BELGUITH

    (Faculty of Economics and Management of Sfax, University of Sfax, Tunisia)

  • Hanen OMRANE

    (Faculty of Economics and Management of Sfax, University of Sfax, Tunisia)

Abstract

This article offers an econometric investigation of the macroeconomic determinants of public debt in Tunisia using VECM model for the period 1986-2015. The results of the full sample analysis reveal that inflation and investment reduce the value of public debt. However, real interest rate, budget deficit and trade openness increase public debt. The study shows also the budget deficit is the most important determinant of public debt in Tunisia.

Suggested Citation

  • Samia OMRANE BELGUITH & Hanen OMRANE, 2017. "Macroeconomic determinants of public debt growth: A case study for Tunisia," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(613), W), pages 161-168, Winter.
    • Handle: RePEc:agr:journl:v:4(613):y:2017:i:4(613):p:161-168
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/1314.pdf
    Download Restriction: no
    File URL: http://www.ectap.ro/articol.php?id=1314&rid=129
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barro, Robert J, 1979. "On the Determination of the Public Debt," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 940-971, October.
    2. SWARAY, Raymond B., 2005. "Primary Commodity Dependence And Debt Problem In Less Developed Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(4).
    3. Cukierman, Alex & Meltzer, Allan H, 1989. "A Political Theory of Government Debt and Deficits in a Neo-Ricardian Framework," American Economic Review, American Economic Association, vol. 79(4), pages 713-732, September.
    4. Forslund, Kristine & Lima, Lycia & Panizza, Ugo, 2011. "The determinants of the composition of public debt in developing and emerging market countries," POLIS Working Papers 156, Institute of Public Policy and Public Choice - POLIS.
    5. Annabelle Mourougane & Jarmila Botev & Jean-Marc Fournier & Nigel Pain & Elena Rusticelli, 2016. "Can an Increase in Public Investment Sustainably Lift Economic Growth?," OECD Economics Department Working Papers 1351, OECD Publishing.
    6. Jérôme Creel & Henri Sterdyniak, 2006. "Faut-il réduire la dette publique ?," SciencePo Working papers Main hal-03417134, HAL.
    7. Edwards, Sebastian & Tabellini, Guido, 1991. "Explaining fiscal policies and inflation in developing countries," Journal of International Money and Finance, Elsevier, vol. 10(1, Supple), pages 16-48, March.
    8. Lavigne, Robert, 2011. "The political and institutional determinants of fiscal adjustment: Entering and exiting fiscal distress," European Journal of Political Economy, Elsevier, vol. 27(1), pages 17-35, March.
    9. Raymond Swaray, 2005. "Primary Commodity Dependence and Debt Problem in Less Developed Countries," Economics Bulletin, AccessEcon, vol. 28(10), pages 1.
    10. Linda Gonçalves Veiga & Francisco José Veiga, 2014. "Determinants of Portuguese local governments’ indebtedness," NIPE Working Papers 16/2014, NIPE - Universidade do Minho.
    11. Aizenman, Joshua & Marion, Nancy, 2011. "Using inflation to erode the US public debt," Journal of Macroeconomics, Elsevier, vol. 33(4), pages 524-541.
    12. repec:agr:journl:v:4(605):y:2015:i:4(605):p:189-198 is not listed on IDEAS
    13. Ilhèm Gargouri & Majdi Ksantini, 2016. "The Determinants Of Public Debt," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 18(59), pages 111-124, March.
    14. Walid BENAYED & Foued Badr GABSI & Samia OMRANE BELGUITH, 2015. "Threshold Effect of Public Debt on Domestic Investment: Evidence from Selected African Countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(605), W), pages 189-198, Winter.
    15. Swamy, Vighneswara, 2015. "Government Debt and its Macroeconomic Determinants – An Empirical Investigation," MPRA Paper 64106, University Library of Munich, Germany.
    16. Tomislav GLOBAN & Marina MATOŠEC, 2016. "Public Debt-to-GDP Ratio in New EU Member States: Cut the Numerator or Increase the Denominator?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 57-72, September.
    17. repec:ebl:ecbull:v:28:y:2005:i:10:p:a0 is not listed on IDEAS
    18. Samia Omrane, 2012. "An Analysis of Exchange Rate Risk Exposure Related to the Public Debt Portfolio of Tunisia: Beyond VaR Approach," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 59(1), pages 59-87, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ampofo, Gideon Minua Kwaku & Jinhua, Cheng & Bosah, Philip Chukwunonso & Ayimadu, Edwin Twum & Senadzo, Patrick, 2021. "Nexus between total natural resource rents and public debt in resource-rich countries:A panel data analysis," Resources Policy, Elsevier, vol. 74(C).
    2. Wang, Wencheng & Ning, Zinan & Shu, Yang & Riti, Joshua Sunday & Riti, Miriam-Kamah J., 2023. "Natural resource rents and public debts nexus in African resource-rich and most indebted nations: Issues with aggregation bias," Resources Policy, Elsevier, vol. 82(C).
    3. Charles Bahr & Lee Hui Shan & Alfred Lam, 2020. "The Macroeconomic Effects of Public Debt: An Empirical Analysis of Evidence from Canada," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 10(1), pages 1-9.
    4. Hlongwane, Nyiko Worship & Daw, Olebogeng David, 2022. "Determinants of public debt in South Africa: A Regime-Switching Approach," MPRA Paper 113203, University Library of Munich, Germany.
    5. Amjad S. Qwader & Sulieman D. Aloshaibat, 2020. "Components of the Public Budget and their Effects on Public Debt in Jordan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(3), pages 88-96.
    6. Halebić Jasmin & Moćević Amina, 2020. "Analysis of Public Debt at Subnational Government Levels: Evidence from Cantons in the Federation of Bosnia and Herzegovina," South East European Journal of Economics and Business, Sciendo, vol. 15(2), pages 109-123, December.
    7. Porumboiu Adriana Elena & Brezeanu Petre, 2022. "Determinants of Government Debt in the Member States of the European Union: Sources of Fiscal Risk," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 707-721, August.
    8. Lerato Mothibi, 2019. "The impact of foreign debt and government debt on economic growth in South Africa," Proceedings of International Academic Conferences 9912015, International Institute of Social and Economic Sciences.
    9. Ngasamiaku, Wilhelm M. & Ngong'ho, Sende, 2022. "Macroeconomic Determinants of Public Debt in Tanzania: Empirical Evidence and lessons for Post COVID-19 Recovery," African Journal of Economic Review, African Journal of Economic Review, vol. 10(5), December.
    10. Yang Li & Hu WenXiu & Su ZhenXing, 2023. "Impact of Local Official Corruption on Local Government Debt in China: The Mediating Role of Government Investment Efficiency," SAGE Open, , vol. 13(3), pages 21582440231, July.
    11. Chukwuebuka Bernard Azolibe, 2021. "Determinants of External Indebtedness in Heavily Indebted Poor Countries: What Macroeconomic and Socio-Economic Factors Matter?," The American Economist, Sage Publications, vol. 66(2), pages 249-264, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carrera, Jorge & de la Vega, Pablo, 2021. "The impact of income inequality on public debt," The Journal of Economic Asymmetries, Elsevier, vol. 24(C).
    2. Ulrich M. Ekouala, 2023. "The role of socio‐political factors in public debt accumulation: Evidence from CEMAC countries," International Studies of Economics, John Wiley & Sons, vol. 18(3), pages 306-325, September.
    3. Ampofo, Gideon Minua Kwaku & Jinhua, Cheng & Bosah, Philip Chukwunonso & Ayimadu, Edwin Twum & Senadzo, Patrick, 2021. "Nexus between total natural resource rents and public debt in resource-rich countries:A panel data analysis," Resources Policy, Elsevier, vol. 74(C).
    4. Wang, Wencheng & Ning, Zinan & Shu, Yang & Riti, Joshua Sunday & Riti, Miriam-Kamah J., 2023. "Natural resource rents and public debts nexus in African resource-rich and most indebted nations: Issues with aggregation bias," Resources Policy, Elsevier, vol. 82(C).
    5. Kevin Bica & Erinda Imeraj, 2024. "Assessment of Public Debt Drivers in the Balkans," Journal of Financial Studies, Institute of Financial Studies, vol. 16(9), pages 52-67, May.
    6. Alfredo Monte & Luca Pennacchio, 2020. "Corruption, Government Expenditure and Public Debt in OECD Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 62(4), pages 739-771, December.
    7. Majumder, Monoj Kumar & Raghavan, Mala & Vespignani, Joaquin, 2020. "Commodity price volatility, external debt and exchange rate regimes," Working Papers 2020-13, University of Tasmania, Tasmanian School of Business and Economics.
    8. Monoj Kumar Majumder & Mala Valliammai Raghavan & Joaquin L. Vespignani, 2021. "Impact of commodity price volatility on external debt: the role of exchange rate regimes," Applied Economics, Taylor & Francis Journals, vol. 53(57), pages 6626-6640, December.
    9. Falcó-Gimeno, Albert & Jurado, Ignacio, 2011. "Minority governments and budget deficits: The role of the opposition," European Journal of Political Economy, Elsevier, vol. 27(3), pages 554-565, September.
    10. Hodabalo Bataka, 2023. "Economic globalization and public debt in Sub‐Saharan Africa," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1756-1771, April.
    11. Derek Hung Chiat Chen, 2003. "Intertemporal excess burden, bequest motives, and the budget deficit," Policy Research Working Paper Series 3086, The World Bank.
    12. Hlongwane, Nyiko Worship & Daw, Olebogeng David, 2022. "Determinants of public debt in South Africa: A Regime-Switching Approach," MPRA Paper 113203, University Library of Munich, Germany.
    13. Alfredo Monte & Luca Pennacchio, 0. "Corruption, Government Expenditure and Public Debt in OECD Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 0, pages 1-33.
    14. Hayo, Bernd & Neumeier, Florian, 2017. "The (In)validity of the Ricardian equivalence theorem–findings from a representative German population survey," Journal of Macroeconomics, Elsevier, vol. 51(C), pages 162-174.
    15. Bernd Hayo & Florian Neumeier, 2016. "Political Leaders' Socioeconomic Background and Public Budget Deficits: Evidence from OECD Countries," Economics and Politics, Wiley Blackwell, vol. 28(1), pages 55-78, March.
    16. Bernd Hayo & Florian Neumeier, 2017. "Public Attitudes toward Fiscal Consolidation: Evidence from a Representative German Population Survey," Kyklos, Wiley Blackwell, vol. 70(1), pages 42-69, February.
    17. Casalin, Fabrizio & Dia, Enzo & Hughes Hallett, Andrew, 2020. "Public debt dynamics with tax revenue constraints," Economic Modelling, Elsevier, vol. 90(C), pages 501-515.
    18. Roubini, Nouriel & Sala-i-Martin, Xavier, 1995. "A growth model of inflation, tax evasion, and financial repression," Journal of Monetary Economics, Elsevier, vol. 35(2), pages 275-301, April.
    19. repec:ers:journl:v:vi:y:2018:i:3:p:98-114 is not listed on IDEAS
    20. Chukwuebuka Bernard Azolibe, 2021. "Determinants of External Indebtedness in Heavily Indebted Poor Countries: What Macroeconomic and Socio-Economic Factors Matter?," The American Economist, Sage Publications, vol. 66(2), pages 249-264, October.
    21. Andres Velasco, 1999. "A Model of Endogenous Fiscal Deficits and Delayed Fiscal Reforms," NBER Chapters, in: Fiscal Institutions and Fiscal Performance, pages 37-58, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:4(613):y:2017:i:4(613):p:161-168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mircea Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.