The Impact of Democratization on “FDI” in Tunisia-A Comparison of Pre and Post Revolution Periods

Marouen Hadhri (Department of economics, University of Corsica, UMR LISA 6240, Corsica, 20250, France)

Article ID: 2089

DOI: https://doi.org/10.30564/jbar.v3i4.2089

Abstract


The study examined the impact of democratization on foreign direct investment in Tunisia and has done a comparison of the pre and post revolution periods. The paper has used secondary data for the variables GDP per capita, FDI, Gross Fixed Capital Formation (GFCF), Current health expenditure (% of GDP) for the period 2001-2018. The study aims to provide arguments of the favorable political conditions for FDI, the purpose is to understand; whether, democracy and autocracy attract FDI in the Pre and Post-event of revolution in Tunisia. In addition, this investigation discusses the key elements for path dependency in democratic transitions from autocracy to democracy. The study found that there is a correlation between the adoption of a democratic regime and the FDI evolution. A democratic regime creates the right political circumstances to improve macroeconomic performance. It can stimulate growth if it is conducted in a stable political environment.


Keywords


Democratic transition; FDI ;Dictatorship; Tunisian revolution

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