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Knowledge economy, governance and FDI: Case of Tunisia

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  • Bouras Hela

    (University of Economics and management of Tunisia)

Abstract

This paper seeks to detect and analyze the interaction of FDI attractiveness factors and the role of ICT, specifically telecommunications, as a factor in the increase of FDI flows. In this paper we are interested in the contribution of the theory of the knowledge economy and the theory of New Institutional Economics. It focuses on the detection of factors affecting attractiveness of FDI and the mechanisms through which ICT will attract more foreign investors. The method used is a method to estimate ordinary least square (OLS), for the period 1990-2010. Our regression model is established on Tunisia. Our investigation found that the component of institutional quality that attracts FDI is the control of corruption in Tunisia. We observe that institutional quality affects FDI positively, through human capital for the case of Tunisia.

Suggested Citation

  • Bouras Hela, 2014. "Knowledge economy, governance and FDI: Case of Tunisia," E3 Journal of Business Management and Economics., E3 Journals, vol. 5(2), pages 052-062.
  • Handle: RePEc:etr:series:v:5:y:2014:i:02:p:052-062
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    References listed on IDEAS

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    1. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    2. Shang-Jin Wei, 2000. "How Taxing is Corruption on International Investors?," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 1-11, February.
    3. Agnès Bénassy-Quéré & Maylis Coupet & Thierry Mayer, 2007. "Institutional Determinants of Foreign Direct Investment," The World Economy, Wiley Blackwell, vol. 30(5), pages 764-782, May.
    4. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, December.
    5. Khalid Sekkat & Marie-Ange Veganzones-Varoudakis, 2007. "Openness, Investment Climate, and FDI in Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 11(4), pages 607-620, November.
    6. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    7. Shang-Jin Wei, 1997. "Why is Corruption So Much More Taxing Than Tax? Arbitrariness Kills," NBER Working Papers 6255, National Bureau of Economic Research, Inc.
    8. Stephen Knack & Omar Azfar, 2003. "Trade intensity, country size and corruption," Economics of Governance, Springer, vol. 4(1), pages 1-18, April.
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