The impact of some economic determinants on the attractiveness of FDI in Algeria: Empirical study (1994-2020)-ARDL application

Abstract

The objective of this study is to empirically assess the impact of growth rates (%GDP), exchange rates and inflation on the attractiveness of foreign direct investment in Algeria during the period 1994-2020. Thereby, the application of the ARDL model is necessary to detect the existence of a cointegration relationship that the growth rate has positively and significantly impacted the attractiveness of between the variables. Moreover, the economic results showed FDI in Algeria. However, this remains insufficient due to their belonging to the hydrocarbon sector. For the other exogenous variables (the exchange rate and inflation) have negatively impacted the attractiveness of these investments.