IDEAS home Printed from
MyIDEAS: Login to save this book chapter or follow this series

Linkages Between Fiscal Debt Sustainability, Growth And Poverty: An Application To Tunisia

  • Salem Kanoun


    (Business Higher School/ Manouba University/Tunisia)

With the view to deal with the shortcoming of the existing approach regarding explicit links between public and external debt sustainability and poverty reduction, this chapter attempts to provide an empirical investigation on these links. Both the direct and indirect channels are considered to highlight the relationships between sustainable indicators, per capita growth and poverty reduction. The Tunisian case shows that real per capita GDP growth is related positively to sustainable thresholds of budget deficit and current account deficit; and negatively to the required fiscal and external adjustments; and sustainable indicators are significantly and positively related to poverty reduction indicators. Indeed, the willingness to implement fiscal and external adjustments, the flexibility in timing adjustment, and good institutional and macroeconomic conditions are crucial issues for conciliating sustainability, per capita growth and poverty reduction. However, temporary persistence of fiscal and/or external adjustment –unsustainable position – or a trade-off between external and fiscal sustainability can be a solution to reduce poverty using direct and indirect reducing poverty public expenditures.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

in new window

This chapter was published in:
  • João Sousa Andrade & Marta C. N. Simões & Ivan Stosic & Dejan Eric & Hasan Hanic (ed.), 2012. "Managing Structural Changes - Trends and Requirements," Books, Institute of Economic Sciences, edition 1, volume 1, number msc.
  • This item is provided by Institute of Economic Sciences in its series Book Chapters with number msc-12.
    Handle: RePEc:ibg:chaptr:msc-12
    Contact details of provider: Postal: 12 Zmaj Jovina St, 11000 Belgrade, Serbia
    Phone: +381 11 2622 357, 2623 055
    Fax: +381 11 2181 471
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Eric Zivot & Donald W.K. Andrews, 1990. "Further Evidence on the Great Crash, the Oil Price Shock, and the Unit Root Hypothesis," Cowles Foundation Discussion Papers 944, Cowles Foundation for Research in Economics, Yale University.
    2. Benabou, R., 1996. "Inequality and Growth," Working Papers 96-22, C.V. Starr Center for Applied Economics, New York University.
    3. Allan w. Gregory & Bruce E. Hansen, 1992. "residual-Based Tests for Cointegration in Models with Regime Shifts," Working Papers 862, Queen's University, Department of Economics.
    4. Cassimon, Denis & Moreno-Dodson, Blanca & Wodon, Quentin, 2008. "Debt Sustainability for Low-Income Countries: A Review of Standard and Alternative Concepts," MPRA Paper 11077, University Library of Munich, Germany.
    5. BERLAGE, Lodewijk & CASSIMON, Danny & DRÈZE, Jacques & REDING, Paul, . "Prospective aid and indebtedness relief: a proposal," CORE Discussion Papers RP 1660, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Michael Grimm & Isabel Günther, 2005. "Growth and Poverty in Burkina Faso: A Reassessment of the Paradox," Discussion Papers of DIW Berlin 482, DIW Berlin, German Institute for Economic Research.
    7. Xavier X. Sala-i-Martin, 1997. "I Just Ran Four Million Regressions," NBER Working Papers 6252, National Bureau of Economic Research, Inc.
    8. Krugman, Paul, 1988. "Financing vs. forgiving a debt overhang," Journal of Development Economics, Elsevier, vol. 29(3), pages 253-268, November.
    9. Annalisa Fedelino & Alina Kudina, 2003. "Fiscal Sustainability in African HIPC Countries: A Policy Dilemma?," IMF Working Papers 03/187, International Monetary Fund.
    10. Adam, Christopher S. & Bevan, David L., 2005. "Fiscal deficits and growth in developing countries," Journal of Public Economics, Elsevier, vol. 89(4), pages 571-597, April.
    11. Stephan Klasen, 2005. "Economic Growth and Poverty Reduction: Measurement and Policy Issues," OECD Development Centre Working Papers 246, OECD Publishing.
    12. G. A. Mackenzie & Philip R. Gerson & David William Harold Orsmond, 1997. "The Composition of Fiscal Adjustment and Growth: Lessons from Fiscal Reforms in Eight Economies," IMF Occasional Papers 149, International Monetary Fund.
    13. Sushanta Mallick & Brigitte Granville, 2005. "How best to link poverty reduction and debt sustainability in IMF-World Bank models?," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(1), pages 67-85.
    14. Kathrin Berensmann, 2004. "New ways of achieving debt sustainability beyond the enhanced HIPC Initiative," Intereconomics: Review of European Economic Policy, Springer, vol. 39(6), pages 321-330, November.
    15. Sami Bibi, 2005. "When is Economic Growth Pro-Poor? Evidence from Tunisia," Cahiers de recherche 0522, CIRPEE.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ibg:chaptr:msc-12. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zorica Bozic)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.