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

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Spatial tax regimes and location choices of manufacturing firms: Survey evidence in southern Tunisia

“…Their results show that plants tend to locate more in competitive zones than in specialized ones and that industrial agglomerations with strong competition experience a lower growth rate, as the high initial number of jobs in a spatial zone reduces the growth rate of jobs. Bouzid and Toumi (2020) focus on the unbalanced regional distribution of foreign direct investment in Tunisia over the period 2008-2018. Their dynamic panel model shows that there is a regional interdependence in location decisions of foreign manufacturing plants and that the existence of foreign plants in a specific location attracts more foreign investment.…”