The objective of this paper is to determine the factors explaining FDI flows in Tunisia during the period 1980-2011.D First, in time series and a stationarity test the VAR method is used for testing the model. Theories argue that economic and political stability are two important factors in the choice of the foreign investor. The empirical results of our study have demonstrated the validity of this approach and they approved the country’s internal stability (economic and political) is more important than the external stability of the country.
Keys word:
FDI, economic stability, political stability, stationarity, VAR.
Classification JEL: C22, C36, C52, F21, F23, O11.