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FDI Contribution to Technical Efficiency in the Tunisian Manufacturing Sector

Author

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  • Sofiane Ghali

    (University of 7 November at Carthage, Tunisia)

  • Sami Rezgui

    (University of Sousse, Tunisia)

Abstract

This paper investigates the contribution of FDI to firms’ technical efficiency by applying two empirical methodologies over the same sample of firms. Using a panel data for 674 firms belonging to the Tunisian manufacturing sector and observed over the period 1997-2001, we show statistically and econometrically that the robustness of FDI spillover effects is affected by the empirical methodology adopted. On the basis of TFP growth decomposition, our results also show that when spillover effects could be confirmed, they are, for a large proportion of firms, counterbalanced by internal technical inefficiency. This last result confirms the idea that FDI contribution to technical efficiency relies mainly on the firm’s internal organizational and absorptive capacities.

Suggested Citation

  • Sofiane Ghali & Sami Rezgui, 2008. "FDI Contribution to Technical Efficiency in the Tunisian Manufacturing Sector," Working Papers 421, Economic Research Forum, revised 06 Jan 2008.
    • Handle: RePEc:erg:wpaper:421
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    Cited by:

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    3. Suyanto & Ruhul Salim, 2013. "Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence," Applied Economics, Taylor & Francis Journals, vol. 45(3), pages 383-395, January.
    4. Maha Kalai, 2019. "Nonparametric Measures of Capacity Utilization of the Tunisian Manufacturing Industry: Short- and Long-Run Dual Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 318-334, March.
    5. Sergio Alessandrini, 2014. "Employment creation through inward FDI in the EMFTA and employment linkages within sectors," Chapters, in: Carlo Altomonte & Massimiliano Ferrara (ed.), The Economic and Political Aftermath of the Arab Spring, chapter 3, pages 79-105, Edward Elgar Publishing.
    6. Nguyen Khac Minh & Nguyen Viet Hung & Pham Van Khanh & Ha Quynh Hoa, 2014. "Do Direct Foreign Investments Increase Efficiency Convergence at Firm Level? The Case of Vietnam, 2000-2011," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(7), pages 109-119, July.

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