Munich Personal RePEc Archive Corruption, FDI and Growth: All the truths of a corrupted regime before and after the social upsurge in Tunisia Hamdi, Helmi and Hakimi, Abdelaziz Aix-Marseille University CERGAM (4525), France, Faculty of Law, Economics and Management of Jendouba, Tunisia 19 April 2015 Online at https://mpra.ub.uni-muenchen.de/63748/ MPRA Paper No. 63748, posted 24 Apr 2015 12:33 UTC Corruption, FDI and Growth: All the truths of a corrupted regime before and after the social upsurge in Tunisia Helmi HAMDI*, Aix-Marseille University CERGAM (4525), France Corresponding author. Tel.: + 973 17547947; fax: + 973 17532274. E-mail address:
[email protected] Abdelaziz HAKIMI, Faculty of Law, Economics and Management of Jendouba, Tunisia
[email protected] Abstract The aim of this paper is to investigate the dynamic relationship between corruption, investment and economic growth in Tunisia within a multivariate framework. In the empirical section we use data span from 1976 to 2013 and we perform a vector error correction model and cointegartion technique to detect causality between corruption, investment, economic growth, credit to the private sector and foreign direct investment. The main findings of this paper show that corruption hampered Tunisia economic growth in the short-run and the long run as well. Corruption could be the main reason of the slowdown of investment activities and the low inflow of capital. Another important conclusion was revealed in this paper is that corruption get worsened in the period that follows the social upsurge of December 2010. Therefore, the main goals of the so called “revolution” are from being achieved yet.