The link between inflation and economic growth has been the focus of recent decades among macroeconomists, policymakers and central banks in both developed and developing countries. In particular, the question of whether inflation is necessary or detrimental to economic growth has led to a theoretical debate and illustrated by empirical results. As far as we are concerned, we have analyzed the relationship between inflation and economic growth in Tunisia from 1980 to 2017. The VAR model (Vector auto Regressive) and the notion of Granger causality were used as a method. This study has shown that inflation has a negative effect on economic growth, hence the need to fight against this devastating plague. Targeting inflation seems a solution.
The article aims to study the relationship between governance and economic growth in Tunisia. For this, we have integrated governance indicators into a growth model. Based on VAR modeling, the estimation of the model thus developed, using data from the World Bank for the period 1996-2017, made it possible to show that certain indicators of governance such as political stability, rule of law and regulatory quality have a positive influence on economic growth in Tunisia. Thus, the fight against corruption can further boost economic growth in countries rich in natural resources and applying democratic principles. On the other hand, other governance indicators such as government effectiveness and the voice of accountability do not produce expected effects on economic growth. As a result, political authorities need to improve governance indicators, including political stability, and control of corruption.
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