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The Effects of International Financial Integration on Economic Growth Case of Tunisia

Author

Listed:
  • Selma Ezzeddine

    (Faculté de science économiques et de gestion à Sfax Tunisia)

  • Sami Hammami

    (Faculté de science économiques et de gestion à Sfax Tunisia)

Abstract

Recent research shows that countries differ according to their experience of capital flows and do not always generate the liberalization of the capital account. This article contributes to the empirical literature by examining the circumstances of international financial integration (IFI) and promoting growth. This article studies the impact of international financial integration on economic growth in Tunisia. Over 1970–2012, we use the error correction model (ECM) to address this issue. The result is consistent with the reality because, in the short run, the integration policy of Tunisia in the global financial market has not been beneficial for growth, which is not the case in the long term. In the long term, we see that growth is elastic compared to foreign direct investment (FDI) which justifies the conclusion that financial integration in the case of Tunisia, in the long run, is real but not in the short run.

Suggested Citation

  • Selma Ezzeddine & Sami Hammami, 2019. "The Effects of International Financial Integration on Economic Growth Case of Tunisia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 868-877, June.
    • Handle: RePEc:spr:jknowl:v:10:y:2019:i:2:d:10.1007_s13132-017-0498-5
    DOI: 10.1007/s13132-017-0498-5
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