The impact of FDI on economic growth in Tunisia: An estimate by the ARDL approach

Najeh Bouchoucha and Walid Ali

MPRA Paper from University Library of Munich, Germany

Abstract: This paper attempts to examine the impact of foreign direct investment on economic growth in Tunisia using times series data for the period 1980-2015. In this study, we used the ARDL (Autoregressive Lag Distribution) approach to study the short-term and long-term relationship between foreign direct investment and economic growth. The empirical findings show that FDI has positive impact on economic growth in both the short and the long term. For the other determinants of economic growth, we have shown that domestic investment and human capital have had a positive and significant effect on the economic growth of the Tunisian economy in the short run rather than in the long run. On the other hand, the degree of trade openness has a negative effect on short-term and long-term economic growth.

Keywords: FDI; economic growth; Tunisia; ARDL (search for similar items in EconPapers)
JEL-codes: F0 F43 (search for similar items in EconPapers)
Date: 2019-01-14
New Economics Papers: this item is included in nep-ara, nep-fdg, nep-gro and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:91465

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