The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia

Kaddachi Hayet; Ben Zina Naceur

doi:doi:10.11648/j.hep.20210601.13

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The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia

Kaddachi Hayet, Ben Zina Naceur

Published in International Journal of Health Economics and Policy (Volume 6, Issue 1)

Received: 14 September 2020 Accepted: 26 November 2020 Published: 26 March 2021

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Abstract

Economic freedom is one of the most important factors in increasing economic growth. Thus, it affects the spillover effects of FDI through the improvement of the absorption capacity in the host countries. In this context, this thesis aims to study the macroeconomic impact of economic freedom on foreign direct investment inflows by basing empirical evidence for data from Tunisia over a period from 1980 to 2017. Using the famous economic method of generalized moments (GMM), the results of the estimates show that FDI positively affects economic growth and requires a high level of economic freedom, and makes it possible to increase the absorption capacity in host countries and '' attract more investors. Economic freedom increases FDI inflows to 0.098 units. More precisely, Tunisia also refers to the positive impact of economic freedom on FDI.

Published in	International Journal of Health Economics and Policy (Volume 6, Issue 1)
DOI	10.11648/j.hep.20210601.13
Page(s)	23-30
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Economic Freedom, Foreign Direct Investment, Economic Growth, GMM

References

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APA Style

Kaddachi Hayet, Ben Zina Naceur. (2021). The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia. International Journal of Health Economics and Policy, 6(1), 23-30. https://doi.org/10.11648/j.hep.20210601.13

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ACS Style

Kaddachi Hayet; Ben Zina Naceur. The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia. Int. J. Health Econ. Policy 2021, 6(1), 23-30. doi: 10.11648/j.hep.20210601.13

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AMA Style

Kaddachi Hayet, Ben Zina Naceur. The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia. Int J Health Econ Policy. 2021;6(1):23-30. doi: 10.11648/j.hep.20210601.13

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@article{10.11648/j.hep.20210601.13,
  author = {Kaddachi Hayet and Ben Zina Naceur},
  title = {The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia},
  journal = {International Journal of Health Economics and Policy},
  volume = {6},
  number = {1},
  pages = {23-30},
  doi = {10.11648/j.hep.20210601.13},
  url = {https://doi.org/10.11648/j.hep.20210601.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hep.20210601.13},
  abstract = {Economic freedom is one of the most important factors in increasing economic growth. Thus, it affects the spillover effects of FDI through the improvement of the absorption capacity in the host countries. In this context, this thesis aims to study the macroeconomic impact of economic freedom on foreign direct investment inflows by basing empirical evidence for data from Tunisia over a period from 1980 to 2017. Using the famous economic method of generalized moments (GMM), the results of the estimates show that FDI positively affects economic growth and requires a high level of economic freedom, and makes it possible to increase the absorption capacity in host countries and '' attract more investors. Economic freedom increases FDI inflows to 0.098 units. More precisely, Tunisia also refers to the positive impact of economic freedom on FDI.},
 year = {2021}
}

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TY  - JOUR
T1  - The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia
AU  - Kaddachi Hayet
AU  - Ben Zina Naceur
Y1  - 2021/03/26
PY  - 2021
N1  - https://doi.org/10.11648/j.hep.20210601.13
DO  - 10.11648/j.hep.20210601.13
T2  - International Journal of Health Economics and Policy
JF  - International Journal of Health Economics and Policy
JO  - International Journal of Health Economics and Policy
SP  - 23
EP  - 30
PB  - Science Publishing Group
SN  - 2578-9309
UR  - https://doi.org/10.11648/j.hep.20210601.13
AB  - Economic freedom is one of the most important factors in increasing economic growth. Thus, it affects the spillover effects of FDI through the improvement of the absorption capacity in the host countries. In this context, this thesis aims to study the macroeconomic impact of economic freedom on foreign direct investment inflows by basing empirical evidence for data from Tunisia over a period from 1980 to 2017. Using the famous economic method of generalized moments (GMM), the results of the estimates show that FDI positively affects economic growth and requires a high level of economic freedom, and makes it possible to increase the absorption capacity in host countries and '' attract more investors. Economic freedom increases FDI inflows to 0.098 units. More precisely, Tunisia also refers to the positive impact of economic freedom on FDI.
VL  - 6
IS  - 1
ER  -

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Author Information

Kaddachi Hayet

Economic Science, Faculty of Economics and Management, University of Sfax, Sfax, Tunisia
Ben Zina Naceur

Economic Science, Faculty of Economics and Management, University of Sfax, Sfax, Tunisia

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APA Style

Kaddachi Hayet, Ben Zina Naceur. (2021). The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia. International Journal of Health Economics and Policy, 6(1), 23-30. https://doi.org/10.11648/j.hep.20210601.13

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ACS Style

Kaddachi Hayet; Ben Zina Naceur. The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia. Int. J. Health Econ. Policy 2021, 6(1), 23-30. doi: 10.11648/j.hep.20210601.13

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AMA Style

Kaddachi Hayet, Ben Zina Naceur. The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia. Int J Health Econ Policy. 2021;6(1):23-30. doi: 10.11648/j.hep.20210601.13

Copy | Download

@article{10.11648/j.hep.20210601.13,
  author = {Kaddachi Hayet and Ben Zina Naceur},
  title = {The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia},
  journal = {International Journal of Health Economics and Policy},
  volume = {6},
  number = {1},
  pages = {23-30},
  doi = {10.11648/j.hep.20210601.13},
  url = {https://doi.org/10.11648/j.hep.20210601.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hep.20210601.13},
  abstract = {Economic freedom is one of the most important factors in increasing economic growth. Thus, it affects the spillover effects of FDI through the improvement of the absorption capacity in the host countries. In this context, this thesis aims to study the macroeconomic impact of economic freedom on foreign direct investment inflows by basing empirical evidence for data from Tunisia over a period from 1980 to 2017. Using the famous economic method of generalized moments (GMM), the results of the estimates show that FDI positively affects economic growth and requires a high level of economic freedom, and makes it possible to increase the absorption capacity in host countries and '' attract more investors. Economic freedom increases FDI inflows to 0.098 units. More precisely, Tunisia also refers to the positive impact of economic freedom on FDI.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia
AU  - Kaddachi Hayet
AU  - Ben Zina Naceur
Y1  - 2021/03/26
PY  - 2021
N1  - https://doi.org/10.11648/j.hep.20210601.13
DO  - 10.11648/j.hep.20210601.13
T2  - International Journal of Health Economics and Policy
JF  - International Journal of Health Economics and Policy
JO  - International Journal of Health Economics and Policy
SP  - 23
EP  - 30
PB  - Science Publishing Group
SN  - 2578-9309
UR  - https://doi.org/10.11648/j.hep.20210601.13
AB  - Economic freedom is one of the most important factors in increasing economic growth. Thus, it affects the spillover effects of FDI through the improvement of the absorption capacity in the host countries. In this context, this thesis aims to study the macroeconomic impact of economic freedom on foreign direct investment inflows by basing empirical evidence for data from Tunisia over a period from 1980 to 2017. Using the famous economic method of generalized moments (GMM), the results of the estimates show that FDI positively affects economic growth and requires a high level of economic freedom, and makes it possible to increase the absorption capacity in host countries and '' attract more investors. Economic freedom increases FDI inflows to 0.098 units. More precisely, Tunisia also refers to the positive impact of economic freedom on FDI.
VL  - 6
IS  - 1
ER  -

Copy | Download