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The Effect of Political Risk on Foreign Direct Investment:The Case of Algeria

Midoun Sissani () and Zairi Belkacem ()
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Midoun Sissani: Faculty of Economic, Management and Commercial Sciences, University Ibn-Khaldoun, Tiaret , Algeria
Zairi Belkacem: Faculty of Economic and Management Sciences and Commercial Sciences,Oran University,Oran, Algeria

Hyperion Economic Journal, 2014, vol. 2, issue 3, 29-35

Abstract: Both political risk and financial risk represent a great loss of profitable opportunities in the host countries and a serious threat on the attractiveness of foreign direct investments (FDI)in almost all developing countries among them Algeria. Methods & results: This paper attempts to study the significant relationship between political risk, financial risk and their effects on Foreign Direct Investment (FDI) in Algeria during 1990 to 2012.In fact, our analysis revealed that political has a negative relationship with (FDI) however financial risk was strong.

Keywords: Political risk; financial risk; foreign direct investments (search for similar items in EconPapers)
JEL-codes: C23 F21 F23 (search for similar items in EconPapers)
Date: 2014
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Handle: RePEc:hyp:journl:v:2:y:2014:i:3:p:29-35