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Financial Development and Poverty Short and Long Run Causality in Tunisia

Leila Chemli

Abstract


The purpose of this paper is to examine the impact of financial development on poverty in Tunisia for the period 1970-2013. Our empirical analysis consists of three steps: the unit root test, the Johansen co-integration test, the Granger causality test in the context of an error correction model (ECM). The econometric results show that financial development is conducive to poverty reduction. It is the existence of a unidirectional causality relationship between financial development and poverty reduction.


Keywords


Financial development - Poverty - Error-correction model Granger causality

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DOI: http://dx.doi.org/10.14665/1614-4007-22-1-006

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"Transition Studies Review" ISSN online 1614-4015 / ISSN print 1614-4007

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