Relationship between Governance Indicators and Economic Growth in Tunisia

Abstract: This article aims to theoretically and statistically study the relationship between governance indicators and economic growth over the period 1996-2017. To do this, we examined the economic situation in Tunisia. Subsequently, we studied the state of governance in Tunisia. And finally, we studied the impact of governance indicators on economic growth. This approach has allowed us to show that certain governance indicators such as political stability, the rule of law and regulatory quality exert a positive influence on economic growth in Tunisia. Thus, the fight against corruption can further boost economic growth. On the other hand, other governance indicators such as government effectiveness and voice and accountability are not producing expected growth effects. As a result, political authorities need to improve governance indicators, including political stability, and control of corruption. Since 2011, successive governments have continued their efforts to put Tunisia on the path to sustainable growth. The measures are increasing, although the improvements are still simple. Keywords: Governance, Economic Growth, Corruption, Political Stability, Rule of Law, Regulatory Quality JEL Classification Number: G34, 047