Description

This paper examines the economic and financial linkages between Morocco and Tunisia and their European partners. Using structural vector autoregressions, we find that growth shocks in European partner countries generate significant responses on growth in Morocco and Tunisia. For Tunisia, exports and, to a much lesser extent, tourism appear to be the major transmission channels. In Morocco, exports, remittances and tourism play relatively equal roles. An analysis with sectoral data supports these results.

Taxonomy

Balance of trade , Business cycles , Economic development , Exports , International trade

More publications in this series: Working Papers

More publications by: Reinout De Bock ; Daniel Florea ; Joël Toujas-Bernate