Analysis the impact of changes in oil prices on the flow of foreign direct investment in Algeria during the period (2000-2016).

Abstract

his study is designed to shed light on the impact of the decline in the price of oil on the size of the foreign direct investment to Algeria, especially after the second semester of the year 2014, the government resorted to the strict measures in the field of foreign trade, and reduced the size of government expenditure, which is one of the most important pests FDI incentives, for this study we tried to build a standard model for the assessment of the relationship in the short or long-term adoption of common integration test and tests of causation and to get the result of our consideration; concluded that the size of the foreign direct investment payback to Algeria, may affect the price of oil in the world markets in the long term and the contrary is incorrect, on this basis, it was concluded that there are other constraints limit attracting it, and this should be on Algeria activating mechanisms Working to attract the required size.