Article : FDI’s Effects On The Tunisian Economy In A New Context

Title

FDI’s Effects On The Tunisian Economy In A New Context

Author

Souad BANNOUR Ep SFAR

The role of FDI in the economy of the host country has been widely identified in literature. Several empirical works have enriched this literature by studying the FDI’s effect on the economies of the host countries. Generally, the empirical results show that the FDI’s effect is not the same for all the empirical works, but varies according to the countries studied, industries, sectors and time. Therefore, the results are mixed and they confirm or reverse the positive effect of FDI on the economy’s growth receiving these investments. We propose in this article to study the FDI’s effect on the Tunisian economy using a structural model. We conclude that FDI exert significant negative effects on the economic growth and significant positive effects on human capital, international trade, employment and technology transfer.

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