The Determinants of Regional Foreign Direct Investment and Its Spatial Dependence : Evidence from Tunisia

This paper explores the relationship between key economic and institutional attributes of Tunisian governorates and their ability to attract foreign direct investment inflows. A dynamic generalized method of moments and spatial autoregressive appro...

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Main Authors:	Bouzid, Bechir N., Toumi, Sofiene
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	FOREIGN DIRECT INVESTMENT REGIONAL DISPARITY SPATIAL ANALYSIS AGGLOMERATION ECONOMIES GOVERNANCE MARKET SIZE INFRASTRUCTURE SPILLOVER EFFECT
Online Access:	http://documents.worldbank.org/curated/en/712341606753036916/The-Determinants-of-Regional-Foreign-Direct-Investment-and-Its-Spatial-Dependence-Evidence-from-Tunisia http://hdl.handle.net/10986/34839

id	okr-10986-34839
recordtype	oai_dc
spelling	okr-10986-348392022-09-20T00:10:30Z The Determinants of Regional Foreign Direct Investment and Its Spatial Dependence : Evidence from Tunisia Bouzid, Bechir N. Toumi, Sofiene FOREIGN DIRECT INVESTMENT REGIONAL DISPARITY SPATIAL ANALYSIS AGGLOMERATION ECONOMIES GOVERNANCE MARKET SIZE INFRASTRUCTURE SPILLOVER EFFECT This paper explores the relationship between key economic and institutional attributes of Tunisian governorates and their ability to attract foreign direct investment inflows. A dynamic generalized method of moments and spatial autoregressive approaches are used to estimate a model of regional foreign direct investment over the recent period. The results provide evidence of regional interdependence of foreign direct investment that appears to be highly clustered along the coastal areas. An increase/decrease of foreign direct investment inflows to a given region creates an incentive/disincentive for other foreign direct investment inflows to the same regions as well as nearby ones. These agglomeration forces are relatively strong in Tunisia in the presence of vertical foreign direct investment. Further, the results indicate that a relatively developed market size, an increase of regional development areas, as well as robust governance practices and infrastructure are positive determinants of regional foreign direct investment inflows. Finally, the paper shows that although some of the determinants exhibit spillover effects on nearby regions, the direct effect on the region represents the bulk of the influence over foreign direct investment inflows. 2020-11-30T22:17:03Z 2020-11-30T22:17:03Z 2020-11 Working Paper http://documents.worldbank.org/curated/en/712341606753036916/The-Determinants-of-Regional-Foreign-Direct-Investment-and-Its-Spatial-Dependence-Evidence-from-Tunisia http://hdl.handle.net/10986/34839 English Policy Research Working Paper;No. 9484 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Middle East and North Africa Tunisia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FOREIGN DIRECT INVESTMENT REGIONAL DISPARITY SPATIAL ANALYSIS AGGLOMERATION ECONOMIES GOVERNANCE MARKET SIZE INFRASTRUCTURE SPILLOVER EFFECT
spellingShingle	FOREIGN DIRECT INVESTMENT REGIONAL DISPARITY SPATIAL ANALYSIS AGGLOMERATION ECONOMIES GOVERNANCE MARKET SIZE INFRASTRUCTURE SPILLOVER EFFECT Bouzid, Bechir N. Toumi, Sofiene The Determinants of Regional Foreign Direct Investment and Its Spatial Dependence : Evidence from Tunisia
geographic_facet	Middle East and North Africa Tunisia
relation	Policy Research Working Paper;No. 9484
description	This paper explores the relationship between key economic and institutional attributes of Tunisian governorates and their ability to attract foreign direct investment inflows. A dynamic generalized method of moments and spatial autoregressive approaches are used to estimate a model of regional foreign direct investment over the recent period. The results provide evidence of regional interdependence of foreign direct investment that appears to be highly clustered along the coastal areas. An increase/decrease of foreign direct investment inflows to a given region creates an incentive/disincentive for other foreign direct investment inflows to the same regions as well as nearby ones. These agglomeration forces are relatively strong in Tunisia in the presence of vertical foreign direct investment. Further, the results indicate that a relatively developed market size, an increase of regional development areas, as well as robust governance practices and infrastructure are positive determinants of regional foreign direct investment inflows. Finally, the paper shows that although some of the determinants exhibit spillover effects on nearby regions, the direct effect on the region represents the bulk of the influence over foreign direct investment inflows.
format	Working Paper
author	Bouzid, Bechir N. Toumi, Sofiene
author_facet	Bouzid, Bechir N. Toumi, Sofiene
author_sort	Bouzid, Bechir N.
title	The Determinants of Regional Foreign Direct Investment and Its Spatial Dependence : Evidence from Tunisia
title_short	The Determinants of Regional Foreign Direct Investment and Its Spatial Dependence : Evidence from Tunisia
title_full	The Determinants of Regional Foreign Direct Investment and Its Spatial Dependence : Evidence from Tunisia
title_fullStr	The Determinants of Regional Foreign Direct Investment and Its Spatial Dependence : Evidence from Tunisia
title_full_unstemmed	The Determinants of Regional Foreign Direct Investment and Its Spatial Dependence : Evidence from Tunisia
title_sort	determinants of regional foreign direct investment and its spatial dependence : evidence from tunisia
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/712341606753036916/The-Determinants-of-Regional-Foreign-Direct-Investment-and-Its-Spatial-Dependence-Evidence-from-Tunisia http://hdl.handle.net/10986/34839
_version_	1764481764223352832

The Determinants of Regional Foreign Direct Investment and Its Spatial Dependence : Evidence from Tunisia

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