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

Bouzid Bourenane (1) , Kamel Rezig (2) , Zakaria Djorfi (3)

1 University of Algiers 3 : Université d' Alger 3
2 Université Lounici Ali - Blida 2
3 TIPAZA UNIVERSITY CENTER DZA

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%.

Mots clés: Foreign exchange reserves; foreign direct investment; ARDL Model; Algeria JEL Classification Codes : F31; F21; C51; O55

Domaines: Econométrie de la finance [q-fin.ST]

Bouzid Bourenane, Kamel Rezig, Zakaria Djorfi. Measuring the effect of Foreign Exchange Reserves on Foreign Direct Investment in Algeria during the period 1990-2020 using the ARDL model. International Journal of Economic Performance - المجلة الدولية للأداء الاقتصادي, 2022. ⟨hal-03723481⟩