Financial Development and Economic Growth: The Tunisian Experience.

The aim of this paper is to investigate empirically the question of whether financial development leads to economic growth in a small, developing country like Tunisia. The paper focuses on the causal link between finance and economic growth in order to discriminate between several alternative theoretical hypotheses. The results suggest the existence of a stable long-run relationship between the development of the financial sector and the evolution of per capita real output that is consistent with the view that financial development can be an engine of growth in this country. [ABSTRACT FROM AUTHOR]