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

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  • 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 - AGER, vol. 0(4(613), W), pages 161-168, Winter.
    • Handle: RePEc:agr:journl:v:4(613):y:2017:i:4(613):p:161-168
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    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).
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