Determinants of foreign direct investment in Tunisia: Empirical assessment based on an application of the autoregressive distributed Lag model

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Teheni El Ghak Abdelkader Zribi Nadia Zrelli Hazar Temmi


In recent years, the changing economic and political environment in Tunisia led to a renewed interest on the drivers of foreign direct investment, given its potential important gains. In this study, we investigated the impact of various factors over the period 1980-2012. In doing this, three categories of determinants were considered: economic, political and sociocultural variables. Empirical findings drawn from the autoregressive distributed lag bounds testing approach show that variation in foreign direct investment inflow in the short-run and long-run is affected by the majority of variables considered, except exchange rate, urban population and gross domestic savings. As a matter of policy, it is essential that government should continue its efforts to create a macroeconomic environment which is attractive to foreign direct investment.

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EL GHAK, Teheni et al. Determinants of foreign direct investment in Tunisia: Empirical assessment based on an application of the autoregressive distributed Lag model. Economics, Management and Sustainability, [S.l.], v. 2, n. 1, p. 43-59, may 2017. ISSN 2520-6303. Available at: <>. Date accessed: 19 jan. 2021. doi:


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