مجلة البشائر الاقتصادية
Volume 7, Numéro 1, Pages 836-852
2021-04-14

Determinants Of Private Sector Investment : An Econometric Study Of The Algerian Case (1980-2017)

Authors : Zahi Yacine . Benatta Mohamed .

Abstract

This study investigates the determinants of private investment in Algeria over the period of 1980-2017. Employing modern time series econometric techniques the Auto Regressive Distributed Lag(ARDL). The results suggest that investment decisions seem to be determined, In the long run, by foreign direct investment, public investment, credit to private sector, real exchange rate, trade liberalization and external debt. while real gross domestic product, foreign direct investment, public investment, real exchange rate, trade liberalization and external debt are statistically significant in the short run. This study provides important results for policymakers in framing investment behavior in policy formulation.

Keywords

Algeria ; ARDL test ; co-integration ; crowding-in ; private investment