The Flows of Direct Foreign Investment and Their Influence on the Economic Growth in Algeria between 1990 and 2020- Econometric Study Using the Model ARDL

Abstract

This research paper aims to clarify the impact of foreign direct investment on macroeconomic indicators in Algeria during the period of 1990 to 2020. In order to achieve the goal of the study, we relied on an econometric study using the autoregressive method for the distributed delay periods. The study concluded that there exists a positive relationship between foreign direct investment and economic growth. The results also illustrated a negative impact of inflation rates on economic growth. The study recommended the necessity to prepare the appropriate conditions in order to attract foreign direct investment, regarding its privileges and positive effects on the Algerian economy.