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Exports, Imports and Economic Growth: An Empirical Analysis of Tunisia

By: Hye, Qazi Muhammad Adnan; Boubaker, Houda Ben Haj | IUP Journal of Monetary Economics, February 2011 | Article details

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Exports, Imports and Economic Growth: An Empirical Analysis of Tunisia


Hye, Qazi Muhammad Adnan, Boubaker, Houda Ben Haj, IUP Journal of Monetary Economics


The aim of this study is to investigate the export-led growth, import-led growth and foreign debt sustainability hypotheses in the case of Tunisia by using annual time series data for the period 1960-2008. Autoregressive Distributed Lag (ARDL) approach is employed to determine the long-run relationship or direction of long-run causality between exports, imports and GDP, and the strength of causal relationship is examined by using variance decomposition method. The results indicate unidirectional causality from exports to economic growth and bidirectional relationship between imports and economic growth. Thus, both export-led growth and import-led growth are valid for Tunisia. On the other …

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