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Financial Development and Poverty Short and Long Run Causality in Tunisia

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  • Leila Chemli

Abstract

The purpose of this paper is to examine the impact of financial development on poverty in Tunisia for the period 1970-2013. Our empirical analysis consists of three steps: the unit root test, the Johansen co-integration test, the Granger causality test in the context of an error correction model (ECM). The econometric results show that financial development is conducive to poverty reduction. It is the existence of a unidirectional causality relationship between financial development and poverty reduction.

Suggested Citation

  • Leila Chemli, 2015. "Financial Development and Poverty Short and Long Run Causality in Tunisia," Journal Transition Studies Review, Transition Academia Press, vol. 22(1), pages 89-102.
    • Handle: RePEc:ase:jtsrta:v:22:y:2015:i:1:p:89-102:id:29
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