مجلة إدارة الأعمال والدراسات الاقتصادية
Volume 6, Numéro 2, Pages 025-042

The Impact Of Corruption On The Economic Growth By Taking Fdi As Intermediate Variable

Authors : Ouis Latifa . Souar Youcef . Ouis Nadjet .

Abstract

In this paper the aim is to investigate the effect of corruption on the economic growth in Algeria by taking foreign direct investment as intermediate variable, using macroeconomic data consisting of: foreign direct investment inflows, corruption perception index (CPI), and Gross Domestic Product (GDP) in Algeria from 2000 till 2018. The research method used is structural equation modeling depending on the partial least squares approach (PLS approach), and it results that the corruption has a negative impact on foreign direct investment and also a negative impact on economic growth in Algeria, however the impact of foreign direct investment on economic growth is positive.

Keywords

Foreign Direct Investment ; Corruption ; Economic Growth ; PLS approach