مجلة دفاتر اقتصادية
Volume 16, Numéro 1, Pages 162-174
2025-05-25

The Transformative Impact Of Foreign Direct Investment In Algeria – A Decade Of Theoretical Insights And Practical Achievements (2014-2024)

Authors : Baala Tahir . Ouamer Mohammed .

Abstract

This research explores the role of foreign direct investment (FDI) in driving economic development in Algeria from 2014 to 2024, bridging theoretical frameworks with real-world outcomes. By analyzing key economic indicators (FDI inflows, GDP per capita, employment trends, and social security enrollment), the study highlights the dynamic relationship between foreign investment and national development. Despite Algeria’s efforts to attract FDI through legal reforms and incentives, the findings reveal significant fluctuations in investment flows, influenced by global economic conditions, domestic policies, and external shocks like the COVID-19 pandemic. The study demonstrates that FDI has a positive but underutilized impact on economic growth, job creation, and social well-being. To fully leverage FDI’s potential, Algeria must address structural challenges, enhance its investment climate, and align its strategies with global best practices. This research provides valuable insights for policymakers seeking to strengthen Algeria’s economic development through sustainable and diversified foreign investments.

Keywords

Foreign Direct Investment ; Economic Development ; Algeria