The sense of causality between growth and economic development: an essay on VAR modeling in the case of Tunisia

Mabrouki, Mohamed (2016): The sense of causality between growth and economic development: an essay on VAR modeling in the case of Tunisia.

Abstract

The purpose of this article is to study the relationship between the economic growth and the development. While, even if it is recognized that the growth is definitely a condition of the development, it is not always sufficient. In this research, we are interested to demonstrate the extent to which growth promotes the development? Did the development leading to growth? Our empirical investigation attempts to test the relationship between GDP and three components of the development indicator (HDI). Using the techniques of VAR modeling and causality in Granger's sense, in the framework of the Tunisian economy during the period from 1970 to 2015, the results of the estimates show the existence of a reciprocal link between economic growth and development.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic growth, Development, HDI, VAR, Granger Causality, Tunisia.
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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