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Foreign Direct Investment: a comparative study of the attraction of Moroccan and Tunisian economies (In French)

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  • Dalila NICET-CHENAF
  • Eric ROUGIER

Abstract

The existing literature points to a series of determinants of FDI attraction such as the size of markets, the costs of labor, infrastructure, the educational level of the labor force, or policy reforms and political stability … However, potential trade-offs or complementarities between similar countries are rarely underscored as factors explaining the performance or the under-performance in attracting FDI. In this paper we try to determine if there is an inverse (positive) relationship between FDI flows in Tunisia and in Morocco. We test this hypothesis is tested in a VAR model (Vector Autogressive Regression) and we show that FDI in Tunisia attract, in an indirect way, the FDI in Morocco, probably by improving the climate of business in the region. But, meanwhile, Morocco undergoes a significant diversion of FDI in favour of Tunisia in the long run.

Suggested Citation

  • Dalila NICET-CHENAF & Eric ROUGIER, 2007. "Foreign Direct Investment: a comparative study of the attraction of Moroccan and Tunisian economies (In French)," Cahiers du GREThA (2007-2019) 2007-02, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    • Handle: RePEc:grt:wpegrt:2007-02
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    Cited by:

    1. Jean-Bernard LAYAN (GREThA-GRES) & Yannick LUNG (GREThA-GRES), 2008. "Attractiveness and agglomeration of automotive industry in Morocco and Tunisia: A comparative analysis (In French)," Cahiers du GRES (2002-2009) 2008-14, Groupement de Recherches Economiques et Sociales.

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    More about this item

    Keywords

    Foreign direct investment (FDI) ; trade-off; attraction ; Morocco ; Tunisia;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other

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