Attractiveness Factors of Foreign Direct Investment in Tunisia: Recent Evidence from Panel Data Analysis
Nejib Mchirgui and
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Samir Saidi: Faculty of economics and management, University of Sfax, Tunisia.
Nejib Mchirgui: Faculty of economics and management, University of Sfax, Tunisia.
Sami Hammami: Faculty of economics and management, University of Sfax, Tunisia.
International Journal of Economics and Empirical Research (IJEER), 2016, vol. 4, issue 8, 400-410
Purpose: In recent decades, foreign direct investment (FDI) is an integral part of an open and effective international economic system and one of the main catalysts of development. However, its benefits does not appear automatically and unequally distributed between countries, sectors and communities which makes competition between the host countries more intense and depends on a large set of factors having different importance. Methodology: In this sense, we propose in this article an evaluation of different macroeconomic variables that may promote the entry of FDI in the industrial sector in Tunisia. Findings: Through an econometric modeling with panel data over a period of 15 years (2000-2014), we found that FDI traditional factors have the greatest impact. Recommendations: Indeed, the difference in factor endowments and market size between Tunisia and the investor countries and the geographical distance and the availability of labor are the most important determinants of FDI in Tunisia.
Keywords: Foreign Direct Investment; Traditional Factors; Territorial Attractiveness; Tunisia (search for similar items in EconPapers)
JEL-codes: C31 F21 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ijr:journl:v:4:y:2016:i:8:p:400-410
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