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Territorial Attractiveness of the Foreign Direct Investment: Empirical Evidence from Panel Data Analysis for the Case of Tunisia

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  • Samir Saidi

    (University of Sfax)

Abstract

The present article aims to evaluate the role of different macroeconomic variables that may promote the entry of the foreign direct investment (FDI) in the industrial sector in Tunisia. In recent decades, several researches indicate that despite the significant impact of the FDI as an important catalyst of development, its benefits remain unequally distributed between countries, sectors and communities. For this reason, the competition between countries becomes more intense and depends on a large set of factors having different importance. In the same order of ideas, we try to estimate the impact of these factors on the FDI attractiveness in Tunisia through an econometric modelling with panel data over the period 2000-2014. We found that the traditional economic factors have the greatest and more significant impact. Also, the results imply that the multinational companies adopt essentially the vertical implementation strategy to invest in Tunisia. The findings have a great value for the decision-makers in Tunisia who can concentrate their efforts on the most important variables to develop the competitiveness of Tunisia.

Suggested Citation

  • Samir Saidi, 2016. "Territorial Attractiveness of the Foreign Direct Investment: Empirical Evidence from Panel Data Analysis for the Case of Tunisia," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(4), pages 311-325, October.
    • Handle: RePEc:dug:actaec:y:2016:i:4:p:311-325
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