External shocks and economic fluctuations: evidence from Tunisia

Rzigui, Lotfi (2005): External shocks and economic fluctuations: evidence from Tunisia. Unpublished.

Abstract

In this paper, we investigate the role of openness and external shock transmission affecting Tunisian economy. The paper proposes a new econometric methodology of fluctuations analysis in the objective to evaluate the effect of external shock based on trade on the dynamics of the GDP. The estimated common trend model reveals the role of external shock as well as technological shock in variation of economic activity. Our results are added to criticisms addressed to RBC model of first generation and show the role of external shock, ignored a long time in the business cycle literature.

• Item Type: MPRA Paper
• Institution: URDEE FSEG Sfax
• Language: English
• Keywords: External shocks; technological shocks; common trend representation; variances decomposition
• Subjects: F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors > C32 - Time-Series Models; Dynamic Quantile Regressions; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles

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