La Revue des Sciences Commerciales

Foreign Direct Investment And Financial Development In Algeria During The Period 1970-2017

Auteurs : Riache Siham . Louail Bilal .

Résumé

This study aims to clarify the relationship between foreign direct investment and financial development in Algeria during the period 1970-2017 in the short and long term. ARDL models were relied upon to study the relationship in the two domains, based on the joint integration of the study variables. The results show that there is an impact of the development of the financial sector on the flow of foreign direct investment in Algeria, but this effect was negative, contrary to what was expected. The reason is that credits granted to the private sector are not granted to those who deserve them, and they are granted randomly without studying. The traditional banking sector in Algeria is one of the biggest obstacles to the development of the foreign direct investment.

Mots clés

Foreign direct investment ; financial development ; ARDL models ; the Algerian economy