The Determinants of FDI in Tunisia: An Empirical Study Through A Gravity Model

Abstract

In order to analyze the determinants of FDI, several empirical studies have been done by applying different econometric models. The purpose of this article is to identify the determinants of FDI in Tunisia through a gravity model. The results of the econometric estimation show that the main factors of attractiveness in Tunisia in the period between 1980 and 2013 are: the importance of the size of the host country market, trade openness, good infrastructure, geographic proximity, political stability and skilled human capital.