Growth model used for the ten year perspective plan of Tunisia

Abstract

The model of this discussion has five variables: the GDP, The external deficit, consumption, the net investment and depreciation. The GDP and the consumption will vary exogenously that is their growth rates will be fixed a priori as data. Having the GDP, the consumption, the net investment and the depreciation for a given year, the trade deficit is then obtained from the equation showing the equality between uses and resources of goods and services. The study of the results obtained reveals that we should reject assumption A for it is too modest and sacrifices the future for the present since the consumption growth rate is equal to that of tie GDP (this assumption only reflects present trends).