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Measuring the effect of Foreign Exchange Reserves on Foreign Direct Investment in Algeria during the period 1990-2020 using the ARDL model

Author

Listed:
  • Bouzid Bourenane

    (University of Algiers 3 : Université d' Alger 3)

  • Kamel Rezig

    (Université Lounici Ali - Blida 2)

  • Zakaria Djorfi

    (TIPAZA UNIVERSITY CENTER DZA - Partenaires IRSTEA - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture)

Abstract

This paper aims to examine the impact of foreign exchange reserves on foreign direct investment in Algeria during the period 1990-2020 by applying the Auto-Regressive Distributed Lag model (ARDL). The model showed that the current variables are co-integrated. Also, the results indicate that foreign exchange reserves have a positive impact on foreign direct investment in the long term only, at a rate of 44%.

Suggested Citation

  • Bouzid Bourenane & Kamel Rezig & Zakaria Djorfi, 2022. "Measuring the effect of Foreign Exchange Reserves on Foreign Direct Investment in Algeria during the period 1990-2020 using the ARDL model," Post-Print hal-03723481, HAL.
    • Handle: RePEc:hal:journl:hal-03723481
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    References listed on IDEAS

    as
    1. Odhiambo, Nicholas M., 2009. "Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach," Energy Policy, Elsevier, vol. 37(2), pages 617-622, February.
    2. Augustine C. Osigwe & Maria Chinecherem Uzonwann, 2015. "Causal Relationship among Foreign Reserves, Exchange Rate and Foreign Direct Investment: Evidence from Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 884-888.
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    More about this item

    Keywords

    Foreign exchange reserves; foreign direct investment; ARDL Model; Algeria JEL Classification Codes : F31; F21; C51; O55;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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