ECONOMIC GROWTH BETWEEN TRADE OPENING AND FDI IN A CONTEXT OF POLITICAL INSTABILITY IN TUNISIA: EMPIRICAL EVIDENCE OF THE ARDL APPROACH
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Abstract
The objective of this article is to empirically examine the effect of trade openness on economic growth in the Tunisian context for the period 1988-2020. We use a time series model for this purpose. The empirical results obtained show that trade openness and political stability can positively impact long-term economic growth, unlike foreign direct investment. The lack of impact from the latter factor may be explained by political instability and macroeconomic uncertainties, which hinder the transfer of technology brought by foreign firms.
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