مجلة دراسات في الاقتصاد وإدارة الأعمال
Volume 9, Numéro 1, Pages 726-745
2026-06-07
The Impact Of Foreign Direct Investment On Economic Growth In Algeria For The Period Between 1970-2022
Authors : Berriche Rabah . Rahmoun Mohamed Said .
Abstract
This study sought to measure the impact of foreign direct investment (FDI) on economic growth in Algeria over the period 1970–2022, by selecting FDI inflows and the trade balance as independent variables and examining their effects on real GDP per capita as an indicator of economic growth. The study also discussed the findings of various research works conducted by international institutions on foreign direct investment. Given the abundance of studies on FDI, the originality of this research lies in the use of the trade balance as a control variable, with the aim of assessing the extent to which these two variables affect economic growth in Algeria. The results indicate that foreign direct investment does not exert a statistically significant effect on economic growth in Algeria in the long run, while its short-run effect is positive but very weak. Moreover, the speed of adjustment suggests that deviations from the long-run equilibrium relationship between foreign direct investment and economic growth require approximately 13 years to return to equilibrium.Keywords : Gross Domestic Product, Economic Growth, Trade Balance, Foreign Direct Investment.
Keywords
Gross Domestic Product ; Economic Growth ; Trade Balance ; Foreign Direct Investment
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