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Determinants of Foreign Direct Investment in Algerian Country during the Period 1990-2017

Author

Listed:
  • Mahfoudi Fouad

    (Faculty of Economic, Commercial and Management Sciences, Laboratory of Development Policies in the Steppe Regions, University of Ziane Achour, Djelfa, Algeria.)

  • Louail Bilal

    (Faculty of Economic, Commercial and Management Sciences, University of M’Hamed Bougara, Boumerdes, Algeria.)

Abstract

The importance of the research is to identify the determinants of foreign direct investment in Algeria and to determine them accurately based on previous studies. We used a model of regression Multiple to identify significant determinants of FDI in the period 1990-2017. The results indicate having a positive and significant effect for both the GDP and economic openness on the outside world. Moreover, the effect negative significant for inflation and economic openness (LNINF1LNOPNESSG). The effect was positive but not significant for the increase in population and GDP per capita. Some of the variables that could affect the results and give better results neglected and this is considered a deficiency in this research and could be problematic for future research. Decision-makers in Algeria can benefit from the results of this research to attract the most foreign direct investment. The study period and the method of estimating the model for the case of Algeria considered as a gap that can add new to the subject of foreign direct investment in Algeria.

Suggested Citation

  • Mahfoudi Fouad & Louail Bilal, 2023. "Determinants of Foreign Direct Investment in Algerian Country during the Period 1990-2017," Zagreb International Review of Economics and Business, Sciendo, vol. 26(1), pages 185-196.
    • Handle: RePEc:vrs:zirebs:v:26:y:2023:i:1:p:185-196:n:1009
    DOI: 10.2478/zireb-2023-0009
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    References listed on IDEAS

    as
    1. Isabel Faeth, 2009. "Determinants Of Foreign Direct Investment – A Tale Of Nine Theoretical Models," Journal of Economic Surveys, Wiley Blackwell, vol. 23(1), pages 165-196, February.
    2. Imad Moosa, 2009. "The determinants of foreign direct investment in MENA countries: an extreme bounds analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1559-1563.
    3. Neha Saini & Monica Singhania, 2018. "Determinants of FDI in developed and developing countries: a quantitative analysis using GMM," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 45(2), pages 348-382, May.
    4. Nnadi, Matthias & Soobaroyen, Teerooven, 2015. "International financial reporting standards and foreign direct investment: The case of Africa," Advances in accounting, Elsevier, vol. 31(2), pages 228-238.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Foreign Direct Investment; Regression Multiple Model; Algeria Economy; Economic Growth; Economic Openness;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • F19 - International Economics - - Trade - - - Other

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