External Debt and Economic Growth in Tunisia

The objective of this study is to identify the effect of external debt on economic growth; we used the debt service as percentage of exports and debt indicators in the first and second degree. The econometric estimation showed that the sign of the coefficient of debt is positive and the debt squared is negative, and beyond a certain stock, the impact of debt on growth becomes negative and Tunisia must control its debts as additional increases will have adverse impacts on the economic performance of the country. Therefore, the borrowing should remain a necessity in cases of extreme emergency, not a solution to all economic problems experienced by the country.

  External Debt and Economic Growth in Tunisia (699.1 KiB, 1,879 hits)

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