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 http://orcid.org/0000-0001-7918-0195 Abdelkader Zribi Nadia Zrelli http://orcid.org/0000-0002-8974-8466 Hazar Temmi

Abstract

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: <https://jems.sciview.net/index.php/jems/article/view/16>. Date accessed: 25 nov. 2017. doi: https://doi.org/10.14254/jems.2017.2-1.4.
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