مجلة دفاتر اقتصادية
Volume 16, Numéro 2, Pages 63-78
2025-11-25

Algeria's Attractiveness For Foreign Direct Investments (an Econometric Analysis Study)

Authors : Mennad Merwa Fatima . Daoudi Mohammed .

Abstract

This study attempts to show the attractiveness of Algeria to Foreign direct investments (FDI), through the application of the ARDL model and the Toda-Yamamoto Causality test for the period 1990-2022. Through the results, we found that with regard to the situation in Algeria, There are more repulsive factors to foreign direct investments than attractiveness. Among the attractive variables, we found the market size on the short term (+1.13%;+ 0.82%) and long term (+6.85%), However, this pull factor is offset by two very repellent disincentives, namely corruption and tax pressure. Public investments also contribute negatively in the short term, but they can contribute positively in the long term.

Keywords

: Foreign direct investments ; , attractiveness, ARDL model, market size, Toda-Yamamoto Causality.