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Short and long-run determinants of inflation in Tunisia

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  • Boukraine, Wissem

Abstract

The depreciation of the national currency, the higher wage costs passed on to prices and the growing external debt, has characterized the Tunisian economy for almost a decade. In this context we investigate its inflation dynamics to understand which variables affects it in the short and the long run. We apply the Autoregressive Distributed-lagged model over quarterly data from 2010 to 2019 alongside the bound testing approach. Our results suggest a significant impact of external debt and loans on inflation in the short and long run, while GDP growth affects inflation only in the long run.

Suggested Citation

  • Boukraine, Wissem, 2020. "Short and long-run determinants of inflation in Tunisia," MPRA Paper 102014, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:102014
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    References listed on IDEAS

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    Cited by:

    1. Wang, Qiang & Dong, Zequn & Li, Rongrong & Wang, Lili, 2022. "Renewable energy and economic growth: New insight from country risks," Energy, Elsevier, vol. 238(PC).

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    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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