The Effect of Real Exchange Rate on Economic Growth: Evidence from Tunisia and Morocco(Pages 971-977)
Hniya Sakli1, Tahar Lassoued2,* and Fedya Talmoudi3
1Department of Economics, University of Sfax, Tunisia.
2High Institute of Management at Gabes, U.R EEE University of Gabes, Tunisia.
3High Institute of Management at Gabes.
This article aims to determine the impact of Real Effective Exchange Rate (REER) on economic growth for Tunisia and Morocco during the period 1988-2019. The methodology adopted was based on the Auto Regressive Distributed Lag (ARDL) model. Our results indicated that an increase in the REER, equivalent to a real appreciation, reduces economic growth in the long term. This is explained by the fact that a real appreciation makes domestic products less competitive than foreign products, which deteriorates the trade balance and thus constitutes a brake on economic growth. While in the short run, the link between real exchange rate and economic growth is statistically insignificant.
Real Effective Exchange Rate, Economic Growth, Panel ARDL, Tunisia, Morocco.
How to Cite:
Hniya Sakli, Tahar Lassoued and Fedya Talmoudi. The Effect of Real Exchange Rate on Economic Growth: Evidence from Tunisia and Morocco. [ref]: vol.20.2022. available at: https://refpress.org/ref-vol20-a109/
Licensee REF Press This is an open access article licensed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, provided the work is properly cited.