Does the external debt composition matter for economic growth in Tunisia?

This paper investigates the long-term impact of external debt components on economic growth in Tunisia over the period 1970-2018. The econometric methodology is based on the ARDL approach and the results show that total external debt negatively influenced economic growth. They also highlight the relevance of a distinction between external debt components. Indeed, we found negative and significant impacts for public and publicly guaranteed non-concessional external debt borrowed from multilateral and from international banks, respectively. In contrast, bilateral external debt and bonds seem positively impacted Tunisian economic growth. These results offer some policy implications on the external debt management in Tunisia.