Testing the Long-Run Relationship Between Oil Price and Inflation in Tunisia: A Fourier CUSUM Cointegration Test
Year: 2025
Type: article
Abstract: This study examines the relationship between oil prices and inflation in Tunisia using data from 1985 to 2024. Applying the innovative Fourier CUSUM test, the findings indicate no long-run connection between the two variables, suggesting that subsidy policies effectively buffer Tunisia from global oil price shocks. However, QARDL results reveal short-term asymmetries: oil price increases cause temporary rises in inflation, while natural gas prices have a dampening effect. Overall, these results highlight the stabilizing - yet fiscally risky - role of subsidies, offering valuable insights for energy-importing economies.
Source: Energy RESEARCH LETTERS
DOI: 10.46557/001c.144076
Author: Taha Zaghdoudi
Institutions: University of Carthage, University of Jendouba
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Climate action
Open Access status: diamond
OpenAlex ID: W4415533102