The importance of foreign direct investment in Algeria and its impact on its trade balance using the ARDL model

Mohamed Bouklia
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Mohamed Bouklia: University of Algiers 3, Algeria

IJEP, 2022, vol. 5, issue 2, Pages : 352-374

Abstract: This study dealt with the importance of foreign direct investment in Algeria and its impact on its trade balance during the time period of 2003-2018 using the ARDL model. The study concluded that foreign direct investment, gross domestic product and exchange rate have a positive impact on trade balance, and that economic openness has a negative impact on trade balance. Hence, the study recommends diversifying exports by attracting foreign direct investment in the non-oil sectors in order to improve national economy.

Keywords: Foreign Investment; Trade balance; Model ARDL (search for similar items in EconPapers)
Date: 2022
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