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The Impact of Domestic Investment in the Industrial Sector on Economic Growth with Partial Openness: Evidence from Tunisia

Author

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  • Sayef Bakari

    (LIEI, University of Tunis El Manar, Tunisia.)

  • Mohamed Mabrouki

    (Higher Institute of Companies Administration University of Gafsa, Tunisia.)

  • Asma Elmakki

    (Higher Institute of Companies Administration University of Gafsa, Tunisia.)

Abstract

This paper investigates the relationship between industrial domestic investment and economic growth in Tunisia. In order to achieve this purpose, annual data for the periods between 1969 and 2015 were tested using the Johansen co-integration analysis of VECM and the Granger-Causality tests. According to the result of the analysis, it was determined that there is a negative relationship between industrial domestic investment and economic growth in the long run term. Otherwise, and on the basis of the results of the Granger causality test, we noted a unidirectional causal relationship from economic growth to industrial domestic investment in the short term. These results provide evidence that domestic investment in industrial sector, thus, are not seen as the source of economic growth in Tunisia during this large period and suffer a lot of problems and poor economic strategy.

Suggested Citation

  • Sayef Bakari & Mohamed Mabrouki & Asma Elmakki, 2018. "The Impact of Domestic Investment in the Industrial Sector on Economic Growth with Partial Openness: Evidence from Tunisia," Economics Bulletin, AccessEcon, vol. 38(1), pages 111-128.
    • Handle: RePEc:ebl:ecbull:eb-17-00690
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    Cited by:

    1. Bakari, Sayef & El Weriemmi, Malek, 2022. "Which is the best for Tunisian Economic Growth: Urbanization or Ruralization?," MPRA Paper 112208, University Library of Munich, Germany.
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    3. El Weriemmi, Malek & Bakari, Sayef, 2024. "Exploring the Influence of Agricultural Exports on Economic Growth: Fresh Insights from Upper Middle-Income Nations," MPRA Paper 121660, University Library of Munich, Germany.
    4. Najeh Bouchoucha & Sayef Bakari, 2021. "The Impacts Of Domestic And Foreign Direct Investments On Economic Growth: Fresh Evidence From Tunisia," Journal of Smart Economic Growth, , vol. 6(1), pages 83-102, Mars.
    5. Mkadmi, Jamel Eddine & Bakari, Sayef & Othmani, Ameni, 2021. "The Impact of Tax Revenues and Domestic Investments on Economic Growth in Tunisia," MPRA Paper 108387, University Library of Munich, Germany.
    6. Bakari, Sayef, 2018. "The Impact Of Citrus Exports On Economic Growth: Empirical Analysis From Tunisia," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 6(1), January.
    7. Sayef BAKARI & Malek El WERIEMMI, 2024. "What drives Tunisian economic growth: urbanization or rural development?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(639), S), pages 215-242, Summer.
    8. Sayef Bakari & Sofien Tiba, 2022. "Agricultural Exports, Agricultural Imports And Economic Growth In China," Journal of Smart Economic Growth, , vol. 7(3), pages 35-61, September.
    9. Nadia Ben Yedder & Malek El Weriemmi & Sayef Bakari, 2023. "The Impact of Domestic Investment and Trade on Economic Growth in North Africa Countries: New Evidence from Panel CS-ARDL Model," EuroEconomica, Danubius University of Galati, issue 2(42), pages 22-41, November.
    10. Bakari, Sayef & Fakraoui, Nissar & Mabrouki, Mohamed, 2020. "The Contribution of Domestic Investment, Exports and Imports on Economic Growth: A Case Study of Peru," MPRA Paper 99041, University Library of Munich, Germany.
    11. Sayef Bakari & Sofien Tiba & Nissar Fakraoui, 2019. "Does Domestic Investment Contribute To Economic Growth In Uruguay? What Did The Empirical Facts Say?," Journal of Smart Economic Growth, , vol. 4(2), pages 53-69, September.
    12. Bakari, Sayef & El Weriemmi, Malek, 2022. "Exploring the Impact of Agricultural Investment on Economic Growth in France," MPRA Paper 113970, University Library of Munich, Germany.
    13. Ebrima K. Ceesay & Phillips C. Francis & Sama Jawneh & Matarr Njie & Christopher Belford & Momodou Mustapha Fanneh, 2021. "Climate change, growth in agriculture value-added, food availability and economic growth nexus in the Gambia: a Granger causality and ARDL modeling approach," SN Business & Economics, Springer, vol. 1(7), pages 1-31, July.
    14. El Weriemmi, Malek & Bakari, Sayef, 2024. "The Impact of Agricultural Exports on Economic Growth: New Evidence from Low Income Countries," MPRA Paper 121631, University Library of Munich, Germany.
    15. Bokosi, Fanwell Kenala, 2022. "The Effects of Industrialisation on Economic Growth: Panel data evidence for SADC countries," African Journal of Economic Review, African Journal of Economic Review, vol. 10(3), June.
    16. Bakari, Sayef, 2021. "Reinvest the relationship between exports and economic growth in African countries: New insights from innovative econometric methods," MPRA Paper 108785, University Library of Munich, Germany.
    17. Mkadmi, Jamel Eddine & Bakari, Sayef & Msai, Achwak, 2021. "Assessing the Impact of Tax Policies on Economic Growth in Tunisia: New Empirical and Policy Analysis," MPRA Paper 109023, University Library of Munich, Germany.
    18. Bakari, Sayef & El Weriemmi, Malek & Mabrouki, Mohamed, 2022. "The Impact of Digitalization and Trade Openness on Economic Growth: New Evidence from Richest Asian Countries," MPRA Paper 113816, University Library of Munich, Germany.
    19. Alssadek, Marwan & Benhin, James, 2021. "Oil boom, exchange rate and sectoral output: An empirical analysis of Dutch disease in oil-rich countries," Resources Policy, Elsevier, vol. 74(C).
    20. Bakari, Sayef & Tiba, Sofien, 2020. "Does Agricultural Investment Still Promote Economic Growth in China? Empirical Evidence from ARDL Bounds Testing Model," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 8(4), October.
    21. Bakari, Sayef, 2022. "The Nexus between Domestic Investment and Economic Growth in Developed Countries: Do Exports matter?," MPRA Paper 114394, University Library of Munich, Germany.
    22. Bakari, Sayef, 2021. "Are Domestic Investments in Spain a Source of Economic Growth?," MPRA Paper 105526, University Library of Munich, Germany.
    23. El Weriemmi, Malek & Bakari, Sayef, 2024. "The Impact of CO2 Emissions, Domestic Investment and Trade Openness on Economic Growth: New Evidence from North African Countries," MPRA Paper 122152, University Library of Munich, Germany.
    24. Bakari, Sayef, 2024. "Causality between Domestic Investment and Economic Growth: New Evidence from Argentina," MPRA Paper 121799, University Library of Munich, Germany.

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    More about this item

    Keywords

    Industrial Investment; Economic Growth; Tunisia; Cointegration; VECM and Causality.;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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