Financial and current account interrelationship, an ARDL bounds test approach: the case of Tunisia before the Jasmine Revolution Online publication date: Mon, 10-Feb-2020
by Hager Farhoud; Lotfi Taleb
International Journal of Services, Economics and Management (IJSEM), Vol. 10, No. 4, 2019
Abstract: The present paper investigates the long and short-run dynamics between the surplus of aggregated and disaggregated financial account and the persistent pattern of current account deficit in Tunisia during the whole period before the Jasmine Revolution (1977 to 2011). The results highlight evidence of long-run cointegration relationships between current account and both financial account and its components in the Tunisian context, indicating that the current account deficit reflects the surplus of financial account. With regard to the causality tests, the results found suggest also long and short-run bidirectional links between current account and both financial account, foreign direct investment, and external borrowing, and between foreign direct investment and debt. The findings prove also, that there is evidence of unidirectional causality from portfolio investment to current account over the long-run and from, foreign direct investment and debt to portfolio investment, over the short-run.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Services, Economics and Management (IJSEM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook