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The Sense Of Causality Between Growth And Economic Development: An Essay On Var Modeling In The Case Of Tunisia

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  • Mohamed Mabrouki

    (Higher Institute of Companies Administration University of Gafsa (Tunisia))

Abstract

The purpose of this article is to study the relationship between economic growth and development. Even if it is recognized that economic growth is definitely a condition of development, it is not always a sufficient condition. In this research, we are interested to demonstrate the extent to which growth promotes the development. Did the development leads to growth? Our empirical investigation attempts to test the relationship between GDP and the three components of the development indicator (HDI). Using the techniques of VAR modeling and causality in Granger's sense, in the framework of the Tunisian economy during the period from 1970 to 2015, the results of the estimates show the existence of a reciprocal link between economic growth and development.

Suggested Citation

  • Mohamed Mabrouki, 2017. "The Sense Of Causality Between Growth And Economic Development: An Essay On Var Modeling In The Case Of Tunisia," Journal of Smart Economic Growth, , vol. 2(1), pages 81-93, March.
    • Handle: RePEc:seg:012016:v:1:y:2017:i:2:p:81-93
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    References listed on IDEAS

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    1. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    2. Lindert Peter H., 1994. "The Rise of Social Spending, 1880-1930," Explorations in Economic History, Elsevier, vol. 31(1), pages 1-37, January.
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    4. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    5. Christopher A. Sims, 1996. "Macroeconomics and Methodology," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 105-120, Winter.
    6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    Cited by:

    1. Zhongwu Zhang & Guokui Wang & Xiaojia Guo, 2022. "Long-Term and Short-Term Effects of Carbon Emissions on Regional Healthy Development in Shanxi Province, China," Sustainability, MDPI, vol. 14(9), pages 1-14, April.
    2. Mohamed Mabrouki, 2018. "Supporting economic growth through innovation: How does human capital influence the rate of growth?," Economics Bulletin, AccessEcon, vol. 38(2), pages 957-972.

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    More about this item

    Keywords

    Economic growth; Development; HDI; VAR; Granger Causality; Tunisia.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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