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

Sayef Bakari

Bulletin of Economic Theory and Analysis, 2018, vol. 3, issue 1, 35-51

Abstract: This paper investigates the relationship between domestic investment and economic growth in Algeria. In order to achieve this purpose, annual data for the period between 1969 and 2015 was tested 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, the Granger Causality Tests shows that domestic investment cause economic growth in Algeria. 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, Lead to the appearance of this long-term negative effect, if it left in this situation.

Keywords: Domestic Investment; VECM; Causality; Economic Growth; Algeria (search for similar items in EconPapers)
JEL-codes: C13 E22 F14 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Working Paper: The Impact of Domestic Investment on Economic Growth: New Policy Analysis from Algeria (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:betajl:0022

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