مجلة بحوث الإدارة والاقتصاد
Volume 6, Numéro 3, Pages 517-535
2024-11-01

The Role Of Foreign Direct Investment In Supporting Economic Diversification In Algeria And Southeast Asian Countries (malaysia, Singapore And Indonesia): Empirical Study Using Panel Data Models For The Period (2000- 2019)

Authors : Mosbahi Radhwane . Hafid Ilias .

Abstract

This research paper examines the role of foreign direct investment (FDI) in supporting economic diversification in Algeria and Southeast Asian countries (Malaysia, Indonesia, Singapore) from 2000 to 2019. using panel models and the Cointegration tests PEDRONI and Kao. The results show that there is a long-run equilibrium between the study variables. Based on the results of estimating the relationship in the long term, we found that there was a positive relationship between FDI inflows and trade openness with economic diversification on the one hand and an inverse relationship between inflation and economic diversification on the other hand.

Keywords

Foreign Direct Investment, Economic diversification, Panel data, PEDRONI test, Kao test.