Foreign direct investment and economic growth in Algeria During the period 1990-2018-An application of the autoregressive distributed lag model(ARDL)

Abstract

The aim of this study is to analyze the Impact of foreign direct investment on economic growth in Algeria over the period 1990-2018.We used the Auto regressive Distributed Lag (ARDL), developed by Pesaran& al (2001), The study shows that in the short and long run, FDI has a significant negative effect on growth in Algeria. This means that foreign direct investment has had a negative effect on the economic growth of Algeria.

            the study also found that local capital and imports have had a positive effect on the economic growth in Algeria