مجلة النواة للدراسات الاقتصادية
Volume 1, Numéro 1, Pages 22-37
2026-06-01

The Relationship Between Regional Development And The Investment Climate - A Theoretical And Analytical Study In Algeria -

Authors : Laoufi Hakima . Benounissa Leila .

Abstract

This study aims to analyze the relationship between the investment climate and regional development in Algeria, from both theoretical and applied perspectives, within the context of the state's efforts to achieve a balanced distribution of economic activity and reduce regional disparities. Economic literature highlights that improving the investment climate is a key driver for promoting domestic and foreign investment, increasing employment opportunities, and supporting economic growth. It also contributes to the utilization of local resources and the achievement of sustainable development at the regional level. Theoretically, the research clarifies that regional development is not merely a distribution of economic resources, but rather an integration process between economic policies and investment environment indicators. This integration enables the transformation of a region's natural, human, and spatial assets into effective development opportunities. The research also indicates that the investment climate encompasses an institutional dimension (legal stability and governance), suitable infrastructure, investment incentives, and factors that attract capital—all elements that directly influence the capacity of regions to achieve development. In reality, the case study in Algeria revealed a significant disparity in investment attractiveness across different regions, resulting from a range of institutional, procedural, and bureaucratic obstacles, despite the presence of substantial natural and human resources. Economic and regional indicators were analyzed to measure the impact of the investment climate on local development indicators. The analysis showed that regions with a more favorable investment climate achieve higher rates of economic growth, greater employment opportunities, and more significant infrastructure development compared to other regions.

Keywords

Investment climate ; regional development ; foreign direct investment ; regional disparities