The Impact Of The Exchange Rate On Tunisia's Attractiveness To Foreign Direct Investment, The Impact Of The Exchange Rate On The Attractiveness Of Tunisia To Foreign Direct Investments

Using an econometric panel data model, this study analyzes the impact of the exchange rate on the attractiveness of Tunisia's manufacturing sector to FDI. The results show that FDI received by this site is negatively related to the real effective exchange rate. This shows the importance of a cheap exchange rate in attracting FDI, especially vertical FDI. This effect is increasingly noticeable in the manufacturing sector.