Skip to main content

The Impact of Foreign Direct Investment on Trade: Evidence from Tunisia’s Trade

  • Chapter
Capital Flows and Foreign Direct Investments in Emerging Markets

Part of the book series: Centre for the Study of Emerging Markets Series ((CSEM))

Abstract

Over the last few years, some developing countries have built a strategy for economic development based on foreign investment in their economies. These countries have realized the key role of FDI in increasing industrialization and stimulating economic growth. The benefits of FDI appear technological transfer, employment, productivity gains, competitiveness and so on. In view of these considerations, attracting FDI has an integral element of policy reforms in many developing countries. Tunisia is no exception.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Brainard, S.L. (1993) A Simple Theory of Multinational Corporations and Trade with a Trade-off Between Proximity and Concentration, NBER Working Paper no. 4269, February 1993.

    Google Scholar 

  • CEPII (1998) ‘Commerce international et investissement direct: amis ou ennemis?’ in Compétitivité des Nations, Paris: Economica, 183–200.

    Google Scholar 

  • Dunning, J.H. (1981) International Production and the Multinational Enterprise, London: Allen Unwin.

    Google Scholar 

  • Eaton, J. and A. Tamura (1994) ‘Bilateralism and Regionalism in Japanese and U.S. Trade and Direct Foreign Investment Patterns’, Journal of Japanese and International Economics, 8(4), 478–510.

    Article  Google Scholar 

  • Fontagné, L., Freudenberg M. and N. Péridy (1998) ‘Commerce international et structures de marché: Une vérification empirique’, Economie et Prévision, no. 135(1998–4), 147–67.

    Article  Google Scholar 

  • Fontagné, L. and M. Pajot (1997) How Foreign Direct Investment Affects International Trade and Competitiveness: an Empirical Assessment. CEPII, document de travail no. 97–17, December.

    Google Scholar 

  • Helpman, E. (1984) ‘A Simple Theory of International Trade with Multinational Corporations’, Journal of Political Economy, 92(3), 451–71.

    Article  Google Scholar 

  • Helpman, E. and P.R. Krugman (1985) Market Structure and Foreign Trade. Cambridge, MA and London: MIT Press.

    Google Scholar 

  • Horstmann, I.J. and J.R. Markusen (1992) ‘Endogenous Market Structures in International Trade’, Journal of International Economics, 32(1–2), 109–29.

    Article  Google Scholar 

  • Lipsey, R.E. and M.Y. Weiss (1981) ‘Foreign Production and Exports in Manufacturing Industries’, Review of Economics and Statistics, 63 (4), 488–94.

    Article  Google Scholar 

  • Lipsey, R.E. and M.Y. Weiss (1984) ‘Foreign Production and Exports of Individual firms’, Review of Economics and Statistics, 66(2), 304–8.

    Article  Google Scholar 

  • Markusen, J.R. (1983) ‘Factor Movements and Commodity Trade as Complements’, Journal of International Economics, 14(3–4), 341–56.

    Article  Google Scholar 

  • Markusen, J.R. (1995) ‘The Boundaries of Multinational Enterprises and the Theory of International Trade’, Journal of Economic Perspectives, 9(2), 169–89.

    Article  Google Scholar 

  • Markusen, J.R. and Venables (1995) Multinational Firms and the New Trade Theory, NBER Working paper no. 5036.

    Google Scholar 

  • Mundell, R.A. (1957) ‘International Trade and Factor Mobility’, American Economic Review, 47(3), 321–35.

    Google Scholar 

  • UNCTAD (2003) World Investment Report, New York, United Nations.

    Google Scholar 

  • Vernon R. (1966) ‘International Investment and International Trade in the Product Life Cycle’, Quarterly Journal of Economics, 80(2), 190–207.

    Article  Google Scholar 

Download references

Authors

Editor information

Sima Motamen-Samadian

Copyright information

© 2005 Rabiâa Mekki

About this chapter

Cite this chapter

Mekki, R. (2005). The Impact of Foreign Direct Investment on Trade: Evidence from Tunisia’s Trade. In: Motamen-Samadian, S. (eds) Capital Flows and Foreign Direct Investments in Emerging Markets. Centre for the Study of Emerging Markets Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230597969_7

Download citation

Publish with us

Policies and ethics