An Analysis of the Business Climate and the Investment Intentions trend in Post-revolutionary Tunisia

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


The paper examined the impact of business climate on the investment intentions of local enterprises, Mediterranean enterprises, and individual entrepreneurs in Tunisia. The paper has used both primary and secondary data. The secondary data is used for literature review and primary data has been collected by survey in Tunisia. Primary data were collected from 257 local and 204 Mediterranean businesses, including Large Corporations, Small businesses and SMEs, and 362 individual Tunisian investors, using a structured questionnaire via face-to-face interviews. Principal Component Analysis, t-test, ANOVA, post-hoc test, and the model of Multinomial Logistic Regression Analysis has been carried out to study the interrelationships among the variables in this paper. A descriptive analysis of the data has also been done. The paper found that the most important economic variables for local and Mediterranean enterprises are the 'presence of support system' and 'Investment Grants'. Though for the Individual Investors the most important economic variables are 'Saturation of Market', 'Investment grants', and 'Data Access'. The social variables 'safety in daily activities, safety while traveling' and 'security level of governance' are the most important variables. Further, the most important political variables affecting investment decisions are ‘Good governance’ and ‘Law enforcement’ of local, Mediterranean enterprises, and individual investors. The paper also found that political dimensions have a significant impact on the investment intentions of local enterprises, while social dimensions have a significant impact on the investment intentions of Mediterranean enterprises. Moreover, economic dimensions have a significant impact on the investment decision of individual investors. The paper suggests that, by developing a favorable climate for businesses, the government should promote investment in Tunisia. Easy credit facilities should be provided to the entrepreneurs. There is a need to provide credit guarantee tools to small and medium-sized businesses for easy access to financial services.


Investment Intentions; ANOVA; PCA; Business climate; Enterprises

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