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Does the external debt composition matter for economic growth in Tunisia?

Author

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  • Samir Abdelhafidh

    (University of Tunis El Manar, Faculty of Economics and Management of Tunis)

Abstract

This paper investigates the long-term impact of external debt components on economic growth in Tunisia over the period 1970-2018. The econometric methodology is based on the ARDL approach and the results show that total external debt negatively influenced economic growth. They also highlight the relevance of a distinction between external debt components. Indeed, we found negative and significant impacts for public and publicly guaranteed non-concessional external debt borrowed from multilateral and from international banks, respectively. In contrast, bilateral external debt and bonds seem positively impacted Tunisian economic growth. These results offer some policy implications on the external debt management in Tunisia.

Suggested Citation

  • Samir Abdelhafidh, 2020. "Does the external debt composition matter for economic growth in Tunisia?," Economics Bulletin, AccessEcon, vol. 40(4), pages 2802-2818.
    • Handle: RePEc:ebl:ecbull:eb-19-00873
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    References listed on IDEAS

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    Cited by:

    1. Rima Aloulou & Maha Kalai & Kamel Helali, 2023. "The symmetric and asymmetric impacts of external debt on economic growth in Tunisia: evidence from linear and nonlinear ARDL models," SN Business & Economics, Springer, vol. 3(7), pages 1-28, July.
    2. Mijiyawa, Abdoul’ Ganiou, 2024. "Does private share of public external debt support economic growth in developing countries?," International Economics, Elsevier, vol. 178(C).

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    More about this item

    Keywords

    ARDL approach; economic growth; external debt composition; Tunisia.;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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