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Volume 9
Issue 3
Online publication date 2013-10-25
Title Export-led growth in Tunisia: A wavelet filtering based analysis
Author Hamrita Mohamed Essaied
Abstract
In this paper, we use a wavelet filtering based approach to study the econometric relationship between exports, imports, and economic growth for Tunisia, using quarterly data for the period 1961:1-2007:4. GDP is used as a proxy for economic growth. We explore the interactions between these primary macroeconomic inputs in a co-integrating framework. We  also  study  the  direction  of causality  between  the  three  variables,  based  on  the more  robust  Toda-Yamamoto modified Wald (MWALD) test. The much-studied relationship between these three primary indicators of the economy is explored with the help of the wavelet multi-resolution filtering technique. Instead of an analysis at the original series level, as is usually done, we first decompose the variables using wavelet decomposition technique at various scales of resolution and obtain relationship among components of the decomposed series matched to its scale. The analysis reveals interesting aspects of the interrelationship among the three fundamental macroeconomic variables.   
Citation
References
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Keywords Export, economic growth, cointegration, wavelet filtering, causality
DOI http://dx.doi.org/10.15208/beh.2013.10
Pages 12-27
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