Analysing the impact of macroeconomic variables that attract foreign direct investment in Algeria, using autoregressive distributed lag model (ARDL)‎ for the period (1990-2018)‎

الملخص EN

Algeria has contributed to improve the investment climate, restoring macroeconomic balances and liberalizing the economy through some structural reforms which contributed to the development the foreign investment.

Through this analytical study, we tried to analyse and measure the impact of some macroeconomic variables that affected foreign direct investment in Algeria during the period 1990-2018, based on the ARDL methodology.

The results showed a long-term equilibrium relationship between the explained variables and the dependent variable (foreign investment).

However, the effect of the independent variables studied on the dependent variable is weak during the study period, due to the sensitivity of the variable dependent on the fluctuations of world oil prices; in addition to the ence of the problem of self-correlation of the sequence of errors with the stability of capabilities over time, which indicates the stability of the foreign direct investment equation.

Key Words: Algeria, ARDL model, Foreign direct investment, investment climate, macroeconomic variables