Public external debt and economic growth in Tunisia

Abstract

The relationship between public external debt and the economic growth of a country is still a subject of significant interest and controversy for researchers.

This article focuses on the issue of the effect of the management of the external debt of developing countries on macroeconomic aggregates. The objective is to conduct an in-depth study of the issue of foreign debt carried out by Tunisia and to know its effects on the economy, notably economic growth in long-term. Using a simple methodological approach, VAR techniques were used to reach the aim of the study over the period 2000-2019.