Revue des Economies financières bancaires et de management
Volume 12, Numéro 1, Pages 780-797
2023-04-30

Factors Of Attractiveness Of Foreign Direct Investments (fdi) In Algeria During The Period 2000 - 2022: "an Empirical Study Using The Arch And Garch Approach

Authors : Bouyacoub Brahim .

Abstract

This study aims to model and identify the main determinants of foreign direct investment in Algeria during the period 2000 - 2022. For this purpose, we applied the ARCH and GARCH estimation method. The main results of our study lead to the conclusion that there is a significant positive impact of the degree of economic openness, the schooling rate, public investment and non-hydrocarbon exports on FDI flows during the period 2000-2022. These results show that FDI could help the economic process in Algeria, which is considered a developing country. Moreover, it is beneficial for both home and host countries and is an integral part of an open and efficient international economic system and is one of the main catalysts of development.

Keywords

FDI ; degree of economic openness ; school enrollment ; public investment ; non-hydrocarbon exports ; ARCH ; GARCH