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The Impacts of Domestic and Foreign Direct Investments on Economic Growth: Fresh Evidence from Tunisia

Najeh Bouchoucha and Sayef Bakari ()

MPRA Paper from University Library of Munich, Germany

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)
JEL-codes: C13 E22 F13 F14 O11 O20 O47 O55 (search for similar items in EconPapers)
Date: 2019-06
New Economics Papers: this item is included in nep-ara, nep-fdg, nep-int and nep-mac
References: View references in EconPapers View complete reference list from CitEc
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:94816

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