Macroeconomic Fluctuations in Tunisia: A Structural Vector

The purpose of this paper is to analyze the sources of macroeconomic fluctuations in Tunisia. Utilizing a structural vector autoregression approach over the period 1970-2009, the results demonstrate that the Tunisian economy is particularly vulnerable to domestic shocks, especially real supply shocks, and external shocks especially terms of trade shocks. In view of our results, we suggest some policy recommendations to reduce the economic impact of these shocks on the Tunisian economy