Determinants of foreign direct investment inflows in Algeria : an analytical econometric study (1980-2017

Abstract EN

The study aims to determine the factors that affect the foreign direct investment inflows in Algeria, using a sample of 38 observation for the the period 1980-2017.

Rely on annual time series and multiple linear regression model to examine the relationship between foreign direct investment inflows as a dependent variable, and market size, trade openness, economic stability, credit provided by financial sector, human capital, political stability, quality of infrastructure as independent variables.

The results show that market size, trade openness, human capital have a positive and significant effect on foreign direct investment inflows in Algeria.