Title: The nature of the Phillips curve in Tunisia: new empirical evidence

Authors: Thouraya Boujelbene Dammak, Younes Boujelbene

Addresses: Faculte des Sciences Economiques et de Gestion de Sfax, Department of Economics, University of Sfax, Route de l'Aerodrome km 4.5, B.P. 1088-3018 Sfax, Tunisia. ' Faculte des Sciences Economiques et de Gestion de Sfax, Unite de Recherches en Economie Appliquee – URECA, Route de l'Aerodrome km 4.5, B.P. 1088-3018 Sfax, Tunisia

Abstract: The debate about the theoretical foundations of the nature of the relationship between inflation and unemployment has been the subject matter of multiple reinterpretations involving most of the modern macroeconomic theories. The lack of research that proved the existence of the Phillips curve in the developing countries accounts for the objective of this study. In fact, our paper examines Tunisia as a case study to empirically prove the relation between inflation rate and unemployment rate. Our findings provide evidence about the existence of a long run trade-off between the unemployment rate and the inflation rate in Tunisia.

Keywords: Phillips curve; expected inflation rate; labour productivity; productivity growth rate; cointegration; Tunisia; unemployment rate; developing countries.

DOI: 10.1504/IJMEF.2009.024836

International Journal of Monetary Economics and Finance, 2009 Vol.2 No.2, pp.126 - 143

Published online: 01 May 2009 *

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