THE IMPACTS OF DOMESTIC AND FOREIGN DIRECT INVESTMENTS ON ECONOMIC GROWTH: FRESH EVIDENCE FROM TUNISIA

Najeh Bouchoucha () and Sayef Bakari
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Najeh Bouchoucha: Faculty of economic and management of Sousse, (Tunisia)

Journal of Smart Economic Growth, 2021, vol. 6, issue 1, 83-102

Abstract: This paper aims to analyze the impact of domestic investment and Foreign Direct Investment on economic growth in Tunisia during the period 1976–2017. This study is based on the Auto-Regressive Distributive Lags (ARDL) approach that is proposed by Pesaran et al (2001). Bound testing approaches to the analysis of level relationships. According to the results of the analysis, domestic investment and foreign direct investment have a negative effect on economic growth in the long run. However, in the short run, only domestic investment causes economic growth. The findings are important for Tunisian economic policy makers to undertake the effective policies that can promote and lead domestic and foreign investments to boost economic growth.

Keywords: Domestic Investment; Foreign Direct Investment; Economic Growth; Tunisia; ARDL. (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (13)

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Related works:
Working Paper: The Impact of Domestic and Foreign Direct Investment on Economic Growth: Fresh Evidence from Tunisia (2019)
Working Paper: The Impacts of Domestic and Foreign Direct Investments on Economic Growth: Fresh Evidence from Tunisia (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:seg:012016:v:6:y:2021:i:1:p:83-102

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