Panel threshold regression model analysis of real effective exchange rate impact on the Arab Maghreb Union economic growth

The purpose of this article was to explain the asymmetry of real effective exchange rate (REER) impact on economic growth for the Arab Maghreb Union during the period 1980-2019. This work sought to measure the adjustment rate of the exchange rate policy towards its equilibrium levels, justifying the use of nonlinear modelling. The complexity of the exchange rate dynamics has led to the application of the Panel Threshold Regression Model to test the hypothesis testifying for its effect on domestic economic growth. The empirical results reveal that the REER shows opposite effects below and over the estimated threshold. This highlights the asymmetrical effect of unforeseen shocks on its volatility. JEL Classification: C33; F31; F43; O55; O5

Total Factor Productivity Growth, Technological Progress and Technical Efficiency Changes: Productivity Change Dimensions in Tunisia

In this study, we use the stochastic frontier production approach to split the total productivity growth sources into technical progress and technical efficiency changes of the economic sectors in Tunisia between 1961 and 2014. Based on the sectors’ evolution, the analysis is centred on the technological progress trend, the technical efficiency change, and the role of productivity change in the economic growth. The empirical results show that the production factors have a significant effect on productivity. The review of the total factor productivity growth sources reveals that the contribution of technological progress is the main source of this growth. JEL Classification Codes: C23, D24, L

Impact of Cost of Capital on European Economic Growth: The Role of IFRS Mandatory Adoption

Since 2005, the International Financial Reporting Standards (IFRS) mandatory adoption in the European Union has played a pivotal role to reduce financing costs which has influenced positively economic growth across member states. Thus, this study examines the effect of Cost of Capital on Economic Growth under IFRS mandatory adoption in 17 European countries between 1994 and 2021 using Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) and System Generalized Method of Moments (GMM-system) methods. The findings reveal a positive correlation between the Cost of Capital and Economic Growth under IFRS adoption. Specifically, the model estimates indicate that the Cost of Capital contributes to a 0.58% increase in Economic Growth in the PMG-ARDL framework. Moreover, the GMM-system model underscores the significance of IFRS adoption in reducing the Cost of Capital, leading to a 0.52% increase in Economic Growth. These results provide insights into the benefits of adopting international accounting standards and highlight the importance of institutional and financial factors in shaping the economic impact of adopting accounting standards

Exchange rate Pass-Through to domestic prices in Tunisia: a short and long run analysis

This study analyzes the impact of the exchange rate fluctuations in the short and long-runs in Tunisia under a pure commitment policy through two channels. The first is the Structural Vector Autoregression used to analyze the short run effects of the exchange rate on the industrial production index and on the consumer and import price indexes. The second is the Vector Error Correction Model used to examine the long run dynamic effects of the exchange rate upon the same variables relying on Tunisian monthly data during the period January 1993 to June 2011. Unlike several empirical studies, which show that the impact of the exchange rate movements on prices has been reduced over the past few years in the industrialized countries, the exchange rate is found to be a potential source not only of production but also of inflation reduction in Tunisia. Indeed, the direct channel of the exchange rate seems to have a significant impact on production and inflation in the long-run, whereas the indirect one has no effect on the money supply. These results strongly support the monetary policy of the central bank targeting the exchange rate because there is a strong correlation between this rate and prices

Exchange rate Pass-Through to domestic prices in Tunisia: a short and long run analysis

This study analyzes the impact of the exchange rate fluctuations in the short and long-runs in Tunisia under a pure commitment policy through two channels. The first is the Structural Vector Autoregression used to analyze the short run effects of the exchange rate on the industrial production index and on the consumer and import price indexes. The second is the Vector Error Correction Model used to examine the long run dynamic effects of the exchange rate upon the same variables relying on Tunisian monthly data during the period January 1993 to June 2011. Unlike several empirical studies, which show that the impact of the exchange rate movements on prices has been reduced over the past few years in the industrialized countries, the exchange rate is found to be a potential source not only of production but also of inflation reduction in Tunisia. Indeed, the direct channel of the exchange rate seems to have a significant impact on production and inflation in the long-run, whereas the indirect one has no effect on the money supply. These results strongly support the monetary policy of the central bank targeting the exchange rate because there is a strong correlation between this rate and prices

Do IFRS disclosure requirements reduce the cost of equity capital? Evidence from European firms

This study analyzes the impact of adopting International Financial Reporting Standards (IFRS) on the cost of equity capital for firms listed on STOXX Europe 600 using a sample of 9773 firm-year observations between 1994 and 2022. We estimate the cost of equity capital using the modified price–earnings–growth ratio model and employ the GMM system to investigate the effect of IFRS Standards on the cost of equity capital. Our results indicate that IFRS adoption reduces firms’ cost of equity capital. We performed various sensitivity analyses to ensure the reliability of our results. Overall, this study contributes to the extant literature on the cost of equity capital implications of IFRS adoption and provides valuable insights for investors, regulators, and policymakers

A New Assessment of the Non-Accelerating Inflation Rate of Unemployment and Capacity Utilization in Tunisia

The empirical developments made by Phillips are at the origin of theoretical orientations highlighting the capacity utilization rate in relation to inflation. It is in this innovative framework that our research whose focus seems to be varied but we tried to concentrate on the comparison between inflation-unemployment relationships through the NAIRU on the one hand, and the inflation-capacity utilization relationship through the NAIRCU on the other hand. Therefore, the degree of asymmetry between NAIRU and NAIRCU becomes particularly important when the economy operates at an unemployment rate far away from the NAIRU or a capacity utilization rate much higher than the NAIRCU

Smooth transition regression model relating inflation to economic growth in Tunisia

Abstract Since its independence, Tunisia has embarked on monetary and financial sector reforms aimed at boosting economic growth. However, these reforms have not been effective due to inflation pressures in this country. Thus, this paper examines the nature of the relationship between financial development and economic growth between 1965 and 2019, using the non-linear logistic smooth transition regression model and considering inflation as a threshold financial development. The results show the existence of a non-linear abrupt relationship with an inflation threshold equal to 3.63%. Specifically, when inflation is below 3.63%, all variables, including inflation, have a significant and positive impact on economic growth. However, when inflation exceeds the estimated threshold, inflation has a significant and negative impact with an elasticity equal to − 0.365. To effectively manage inflation, the Tunisian authorities are encouraged to set and embrace specific inflation targets as a goal. This approach aims to mitigate inflationary pressures and foster a favourable environment for financial development in Tunisia, thereby promoting economic growth. Hence, it becomes imperative to implement such measures that alleviate inflationary pressures and drive economic growth through the facilitation of development finance by the banking sector

Influence of the Variation of Current and Frequency on the Discharge's Parameters

International audienceInductively coupled plasma of Mercury–Argon composition was investigated using a numerical simulation based on finite elements method at low pressure (6 m torr of Hg and 300 m torr of Ar). A self-consistent model working at a frequency of 250 kHz was developed using the plasma module in Comsol Multiphysics for studying the discharge phenomena. The 3-D plasma model gives a description of the influence of some parameters that characterize the discharge such as the electron density and electron temperature for various inputs’ current and frequency. The purpose of this article is to obtain the optimal operating conditions of the discharge and to show the veracity of the 3-D model taking into account some assumption used to simplify the model. The performance of the electrodeless fluorescent lamps can be depicted, which will contribute to a further optimization of the RF inductions’ lamps to reduce the energy consumption