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Multivariate Granger causality between foreign direct investment and economic growth in Tunisia

Author

Listed:
  • Helmi Hamdi

    (Aix-Marseille University CERGAM (EA 4225))

  • Rashid Sbia

    (DULBEA, Solvay Business and Economics School)

  • Hakimi Abdelaziz

    (FSEJG University of Jendouba)

  • Wafa Khlaifia hakimi

    (FSEGJ University of Jendouba)

Abstract

The aim of this paper is to empirically examine the dynamic relationship between foreign direct investment and economic growth in Tunisia within a multivariate framework. We use annual data for the period 1976-2010 and we perform an econometric model based on cointegration and error correction modeling techniques. The empirical results show that foreign direct investments did not have significant impacts on Tunisian economy; however exports are the main engine for growth.

Suggested Citation

  • Helmi Hamdi & Rashid Sbia & Hakimi Abdelaziz & Wafa Khlaifia hakimi, 2013. "Multivariate Granger causality between foreign direct investment and economic growth in Tunisia," Economics Bulletin, AccessEcon, vol. 33(2), pages 1193-1203.
    • Handle: RePEc:ebl:ecbull:eb-13-00222
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    References listed on IDEAS

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    Cited by:

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    2. Sbia, Rashid & Shahbaz, Muhammad & Hamdi, Helmi, 2014. "A contribution of foreign direct investment, clean energy, trade openness, carbon emissions and economic growth to energy demand in UAE," Economic Modelling, Elsevier, vol. 36(C), pages 191-197.
    3. Brian Muyambiri & Nicholas M. Odhiambo, 2018. "Financial Development and Investment Dynamics in Mauritius: A Trivariate Granger-Causality Analysis," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(2-3), pages 62-73, April-Sep.
    4. Hakimi, Abdelaziz & Hamdi, Helmi, 2016. "Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1445-1456.
    5. Muyambiri Brian & Odhiambo Nicholas M., 2018. "Financial Development and Investment in Botswana: A Multivariate Causality Test," Folia Oeconomica Stetinensia, Sciendo, vol. 18(2), pages 72-89, December.
    6. Hamdi, Helmi & Hakimi, Abdelaziz, 2015. "Corruption, FDI and Growth: All the truths of a corrupted regime before and after the social upsurge in Tunisia," MPRA Paper 63748, University Library of Munich, Germany.
    7. Helmi Hamdi & Abdelaziz Hakimi, 2023. "Corruption, imported innovation, and growth: Evidence using the panel smooth transition regression approach for developing countries," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(5), pages 956-972, June.
    8. Muyambiri, Brian & Odhiambo, Nicholas M, 2017. "The causal relationship between financial development and investment in Botswana," Working Papers 22607, University of South Africa, Department of Economics.
    9. Nyasha, Sheilla & Gwenhure, Yvonne & Odhiambo, Nicholas M., 2017. "The Dynamic Causal Linkage Between Financial Development And Economic Growth: Empirical Evidence From Ethiopia," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 70(1), pages 73-102.
    10. Emam, Sherief & Grebel, Thomas, 2014. "Rising energy prices and advances in renewable energy technologies," Ilmenau Economics Discussion Papers 91, Ilmenau University of Technology, Institute of Economics.
    11. Sheilla Nyasha Author-Name: Yvonne Gwenhure & Nicholas M. Odhiambo, 2017. "Poverty and Economic Growth in Ethiopia: A Multivariate Causal Linkage," Journal of Developing Areas, Tennessee State University, College of Business, vol. 51(1), pages 343-359, January-M.
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    More about this item

    Keywords

    FDI; Growth; Tunisia; VECM;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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