REGS Outils de lecture

The objective of this paper is to build an index of financial liberalization in Tunisia using the Principal Component Analysis method over a period of 36 years from 1980 to 2015. In addition, this paper also includes econometric estimates terms of co-integration and causality between financial liberalization policy and Tunisian economic growth. We adopt a methodology which is based on the causality analysis. This approach requires passing through three stages. The first step is to check the properties of time series (stationary and integration order) of the financial liberalization index and economic growth through the use of unit root Dickey-Fuller tests. The second step seeks to examine the long-term relationship between financial liberalization and economic growth by using a multivariate analysis Johansen. Finally, the third step seeks to determine the direction of causality between the financial liberalization and economic growth by applying a Vector Error Correction Model (VECM). The results show that the two series are integrated of order one (I (1)), the existence of a long-term relationship between the financial liberalization index and economic growth and the presence of causality Granger unidirectional of financial liberalization index to economic growth.