Tunisian Financial System: A Growth Factor

Abstract

The relationship between financial development and economic growth were the subject of many recent theoretical and empirical works. These works generally focused on link between finance and growth according to the maturity of financial systems. The Tunisian economy knew a long period of financial repression before starting several phases of liberalization. The aim of the paper is to determinate the impact of the development of the Tunisian financial system on economic growth. We identified economic and financial development indicators of Tunisian economy. The empirical study on Tunisia is based on causality tests within B-VAR framework. Reciprocal relationships are only finding between the ratio of investment on GDP and the loans granted to private and public sectors. The economic role of government is highlighted, over the pre-reforms period as well as during the recent time.