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Revisiting The Finance-Growth Nexus: Further Evidence From Tunisia

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  • RIADH BEN JELILI

    (Arab Planning Institute, P. O. Box 5834 Safat 13059, State of Kuwait)

Abstract

The aim of this paper is to analyze the relationship between financial development and economic growth in terms of intersectoral spillovers. The econometric investigations are performed using a dynamic theoretical framework consistent with Feder (1983). For this purpose, yearly national accounts data for Tunisia during the period 1972–2008 are exploited. One of the principal motivations of this investigation goes back to the fact that the issue of the role of financial factor in economic development in Tunisia is not adequately researched. This paper should be viewed as an attempt to fill this gap. The empirical estimations show significant externalities from the financial services industry to the real economy.

Suggested Citation

  • Riadh Ben Jelili, 2012. "Revisiting The Finance-Growth Nexus: Further Evidence From Tunisia," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-15.
    • Handle: RePEc:wsi:medjxx:v:04:y:2012:i:01:n:s1793812012500034
    DOI: 10.1142/S1793812012500034
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    More about this item

    Keywords

    Financial development; two-sector growth model; Tunisia; time series models;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • 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
    • F - International Economics

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