The relationship between foreign direct investment inflows and economic growth in Algeria : econometric study during the period (1988-2018)‎

Abstract EN

This study aims to try to measure the economic relationship between of FDI inflows and economic growth in Algeria for the period (1988-2018), using cointegration and the causality of Granger, The results of the study concluded that there is a convergence between the variables in the long term and also an effect between them according to the error correction model as well as a one-way causality out of the total FDI inflows and GDP, where the interpretation rate was somewhat weak, Due to the Algerian economy's link to the Hydrocarbons sector which is subject to fluctuations of prices in the oil market worldwide prices, As a result Algeria is still in need of further reforms that would attract the largest possible amount of foreign direct investment by working first to create an investment encouraging environment.