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Foreign direct investment in Algeria: A theoretical and applied study

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  • Daoudi Mohammed

    (Prof at the Center University of Maghnia, Faculty of Economics, Maghnia, Algeria)

Abstract

This paper studies the most important determinants of foreign direct investment in Algeria in a theoretical and practical framework (using the co-integration test and the causality test). Foreign direct investment has become very important, because it has become the object of competition between countries, whether developed or underdeveloped. Algeria, like the countries of the world, tries to take advantage of it as well, but this comes up against obstacles that this study has tried to identify, the most important of which are inflation (-0.0203) and administrative corruption (-1.2821), with the weakness of other determinants to attract it, such as market size (0.0113) or public spending (0.0527).Thus, according to the results of the study, Algeria still remains unattractive for foreign direct investment.

Suggested Citation

  • Daoudi Mohammed, "undated". "Foreign direct investment in Algeria: A theoretical and applied study," Review of Socio - Economic Perspectives 202307, Reviewsep.
    • Handle: RePEc:aly:journl:202307
    DOI: https://doi.org/10.19275/RSEP150
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    More about this item

    Keywords

    foreign direct investment; attraction; market size; causality test; investment climate;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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