The Impact of Domestic Investment on Economic Growth: New Policy Analysis from Algeria

Sayef Bakari

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the relationship between domestic investment and economic growth in Algeria, by using co integration analysis of Vector Error Correction Model. The equation of the long run relationship shows that domestic investment has a negative effect on economic growth. However, in the short run term, domestic investment causes economic growth. These results prove that domestic investment is a source of economic growth for Algeria, but unfortunately it suffers from several obstacles and problems that are directly related to the poor management and the weak strategy for development and investment.

Keywords: Domestic Investment; VECM; Causality; Economic Growth; Algeria. (search for similar items in EconPapers)
JEL-codes: E2 E22 F1 F14 O40 O47 (search for similar items in EconPapers)
Date: 2017-06
New Economics Papers: this item is included in nep-ara and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Related works:
Journal Article: The Impact of Domestic Investment on Economic Growth New Policy Analysis from Algeria (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:80053

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