Published Online: Apr 30, 2023
Page range: 77 - 92
Received: Dec 03, 2022
Accepted: Mar 22, 2023
DOI: https://doi.org/10.19275/rsep150
Keywords
© 2023 Daoudi Mohammed., published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.
This paper studies the most important determinants of foreign direct investment in Algeria in a theoretical and practical framework (using the co-integration test and the causality test). Foreign direct investment has become very important, because it has become the object of competition between countries, whether developed or underdeveloped. Algeria, like the countries of the world, tries to take advantage of it as well, but this comes up against obstacles that this study has tried to identify, the most important of which are inflation (-0.0203) and administrative corruption (-1.2821), with the weakness of other determinants to attract it, such as market size (0.0113) or public spending (0.0527).Thus, according to the results of the study, Algeria still remains unattractive for foreign direct investment.