مجلة المنهل الاقتصادي
Volume 8, Numéro 1, Pages 1237-1254
2025-06-04

Analysis Of The Impact Of Fdi On Gdp In Algeria, Morocco, Tunisia, And Libya: An Econometric Study For The Period 1970-2023

Authors : Daoudi Mohammed .

Abstract

This study examines the impact of Foreign Direct Investment (FDI) on economic growth in Algeria, Morocco, Tunisia, and Libya using panel data analysis. The results show a long-term relationship between FDI and GDP, though without clear causality, indicating an indirect influence. Morocco benefits more from FDI due to its diversified economy, while Algeria and Libya experience weaker effects due to oil dependency and political instability. Weak business environments and insufficient reforms further limit FDI benefits. The study recommends improving investment conditions, economic diversification, and political stability. Ultimately, it concludes that FDI can support growth, but its impact depends on each country's policies and institutional framework.

Keywords

Foreign Direct Investment (FDI) ; Economic Growth ; Cointegration ; Panel data analysis ; Economic stability