مجلة الدراسات القانونية والاقتصادية
Volume 6, Numéro 1, Pages 29-44
2023-08-31

The Effects Of Financial Development On Foreign Direct Investment: An Empirical Study In The Case Of Algeria Using The Ardl Model

Authors : Ghoul Razika . Djouadi Ali .

Abstract

Abstract: This study intends to examine the effects of financial development on foreign direct investment in Algeria during the period 1990-2020. The findings of the ARDL model estimation showed that financial development has a short-term negative effect on foreign direct investment. However, in the long run, the study found that financial development does not significantly influence attracting foreign direct investment. This suggests that attracting foreign direct investment also depends on other crucial factors such as infrastructure, government initiatives, and political and economic stability

Keywords

Financial Development, FDI, ARDL Model, Algeria.