The Dynamics of Chinese FDI in Africa: A Case Study Algeria

Mohammed Salah Abdessultane, Youlin Zhao and Bakir Hami

Business Management and Strategy, 2025, vol. 16, issue 2, 188-210

Abstract: This study employs a Seasonal Autoregressive Integrated Moving Average with Exogenous Variables (SARIMAX) model to examine the determinants, temporal patterns, and projected trajectories of Chinese Foreign Direct Investment (FDI) flows to Algeria over the period 2003-2021. Chinese capital investments have emerged as a critical factor in Algeria's economic transformation, with concentrated activity in construction, energy extraction, and infrastructure development sectors. Utilizing quarterly time-series data derived from national statistical agencies and international financial institutions, this research models the dynamic relationship between Chinese FDI inflows and key macroeconomic determinants, including international oil price volatility, exchange rate fluctuations, and bilateral trade volumes. The empirical analysis incorporates advanced econometric techniques to capture seasonal variations and external shocks affecting investment patterns. Through ex-ante forecasting methodologies, the study projects future FDI trajectories while identifying primary explanatory variables that influence investment decisions. The econometric findings provide empirical evidence for policymakers seeking to develop strategic frameworks for attracting sustainable and sectorally diversified foreign investment portfolios. The research contributes to the broader literature on South-South investment flows and offers practical insights for enhancing bilateral economic cooperation mechanisms between China and Algeria.

Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.macrothink.org/journal/index.php/bms/article/download/22857/17659 (application/pdf)
https://www.macrothink.org/journal/index.php/bms/article/view/22857 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mth:bmsmti:v:16:y:2025:i:2:p:188-210

Access Statistics for this article

Business Management and Strategy is currently edited by Jean Lee

More articles in Business Management and Strategy from Macrothink Institute
Bibliographic data for series maintained by Technical Support Office ( this e-mail address is bad, please contact ).