Beam Journal of Economic Studies
Volume 10, Numéro 1, Pages 388-402
2026-03-15

The Dynamic Response Of Domestic Investment Levels To Financial Development Activity In Algeria During The Period 1990-2024

Authors : Belghalem Hamza . Ilifi Mohamed . Serir Abdekadir .

Abstract

This study examines the asymmetric effects of financial development on investment levels in Algeria from 1990 to 2024. Using the NARDL model. we found that a decline in financial development activity, indicated by an expansion in loan size, increases investment levels by 0.85 units. Moreover, a one-unit increase in loan size leads to a 0.26-unit rise in investment. These findings show that the expansion of financial development in Algeria plays a significant role in boosting investment, especially when economic stability is achieved, including controlling unemployment and ensuring acceptable economic growth rates.

Keywords

Financial Development Activity; Investment Levels; Bank Loans; Unemployment; Economic Growth