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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

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  • BOURENANE, Bouzid
  • REZIG, Kamel
  • DJORFI, Zakaria

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

  • BOURENANE, Bouzid & REZIG, Kamel & DJORFI, Zakaria, 2022. "Measuring the effect of foreign exchange reserves on foreign direct investment in Algeria during the period 1990-2020 using the ARDL model," MPRA Paper 114990, University Library of Munich, Germany, revised 11 Apr 2022.
    • Handle: RePEc:pra:mprapa:114990
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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;
    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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