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Corruption, FDI, and Growth: An Empirical Investigation into the Tunisian Context

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  • Helmi Hamdi
  • Abdelaziz Hakimi

Abstract

The aim of this article is to investigate the dynamic relationship between corruption, investment, and economic growth in Tunisia within a multivariate framework. In the empirical section, we use a data span from 1976 to 2015, and we perform a vector error correction model and cointegartion technique. The main findings of this study show that corruption hampered Tunisia’s economic growth in the short run and the long run as well. Corruption could be the main reason for the slowdown of investment activities and the low inflow of capital. Hence, more efforts are needed to fight corruption in Tunisia.

Suggested Citation

  • Helmi Hamdi & Abdelaziz Hakimi, 2020. "Corruption, FDI, and Growth: An Empirical Investigation into the Tunisian Context," The International Trade Journal, Taylor & Francis Journals, vol. 34(4), pages 415-440, July.
    • Handle: RePEc:taf:uitjxx:v:34:y:2020:i:4:p:415-440
    DOI: 10.1080/08853908.2019.1699481
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