Estimating the impact of foreign direct investment on economic growth in Algeria

This study estimates the impact of foreign direct investment (FDI) on economic growth of Algeria. Using an annual data from 1990 to 2013, the impacts of FDI are estimated and the short run causality relationship between FDI and economic growth are evaluated. Results reveal that in long run, the FDI does not have a significant impact on economic growth. However, there is a short run causal relationship from FDI to economic growth. This may due to the fact that the Algerian economy is heavily relying on crude oil and the absence of a conductive environment for foreign
investors