of the economy with the exception of finance, mining, energy and domestic commerce, which are regulated by separate laws. The current investment code dates back to December 27, 1993 (Law 93120 of 27 December 1993) and during Ben Ali’s tenure its coverage and key provisions concerning entry were amended by 25 presidential decrees, which are included in our database.<sup>5</sup> While the code stipulates the freedom to invest for both foreign (non-resident) and domestic (resident) entities, it also contains a number of provisions that restrict this freedom. Two salient such restrictions are authorization requirements and restrictions on FDI.<sup>6</sup> Starting with the former, for a number of activities one needs to obtain prior authorization from the government in order to be able to operate legally; i.e. one needs to apply for operating permits. Examples of such activities include fishing, tourism (e.g. hotels), air transport, maritime transport and road transport, telecommunications, education, the film industry, real estate, marketing, and health related industries.

Second, the investment code stipulates a number of activities for which foreign greenfield investors<sup>7</sup> need to obtain permission from the Investment Commission ( _Commission Superieure d’Investissement - CSI),_ which is chaired by the Prime Minister, to invest when their foreign equity exceeds 50% of capital, notably transport, communications, tourism, education, cultural production, 5 More specifically, the decrees covered by our database are: Décret n° 95-1095, Décret n° 96-1234, Décret n° 96-2229, Décret n° 97-0503, Décret n° 97-783, Décret n° 98-29, Décret n° 98-2094, Décret n° 2000-821, Décret n° 2001-2444, Décret n° 2001-1254, Décret n° 2002-0518, Décret n° 2002-519, Décret n° 2003-1676, Décret n° 2004-0008, Décret n° 2004-1630, Décret n° 2004-2129, Décret n° 2005-2856, Décret n° 2006-1697, Décret n° 2007-1398, Décret n° 2007-2311, Décret n° 2007-4194, Décret 2008-3961, Décret n° 2009-2751, Décret n° 2010-825 and Décret n° 2010-2936. We do not include decrees that do not pertain to the coverage of the investment code or entry regulation. That is, we do not record decrees resulting in changes in registration requirements, customs regulations, fiscal advantages, etc.

6 In addition to containing provisions regulating entry and FDI, the code also contains a myriad of clauses concerning taxation and the provision of fiscal incentives. These include fiscal incentives to promote R&D, SME development, regional development, environmental protection, international trade and agricultural upgrading. While the specificity and complexity of these incentives renders it challenging to analyze them in a comprehensive manner using econometric methods, our exploratory foray into this interesting area for future research is suggestive of substantial abuse of fiscal incentives. For example, Décret n° 2010-3116 stipulates that the ministry of transport will contribute towards the financing of 15 kilometers of railway to connect Carthage Cement’s production facility at Jebel Ressas Mornag to the railroad network.

> 7 All mergers and acquisitions in which foreign investors obtain majority foreign ownership are subject to approval of the _Commission Superieure d’Investissement._

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