The impact of investment and political risks on economic growth in Algeria during the period 1984-2016
Keywords:
Economic growth, private investment, foreign direct investment, political risk, Algeria
Abstract
This study aims to discover the impact of private public and foreign direct investment on economic growth in Algeria, using variables to regulate the model represented in corruption, internal and external conflict, and this using annual data from 1984 to 2016, by applying the Auto-Regressive Distributed Lagmodel (ARDL).The study found that private investment, foreign direct investment and external conflict have a positive effect on economic growth in the long and short term and a negative impact of internal conflict on economic growth in the long term. The results also show there is room to return to the equilibrium situation, estimated at 16%.
References
Ahmad, E., Ullah, M. A., & Arfeen, M. I. (2012). Does corruption affect economic growth?,. Lat. Am. J. Econ.,, 49(2), 277-305. doi: doi: 10.7764/LAJE.49.2.277.
Alesina, P. S., Ozler, S., & Roubini, A. (1996). Political Instability and Economic Growth. Journal of Economic growth, 1(2), 189-211. doi:10.1007/BF00138862
Bakari, S., & Tiba, S. (2019). The Impact of Trade Openness, Foreign Direct Investment andDomestic Investment on Economic Growth: New Evidence from Asian Developing Countries. . MPRA Paper No. 94453, University Library of Munich, Germany.
Belloumi, M., & Alshehry, A. (2018). The Impacts of Domestic and Foreign Direct Investmentson Economic Growth in Saudi Arabia. Economies, 6(1), 18. doi:https://doi.org/10.3390/economies60l00l8.
Besley, T., & Reynal-Querol, M. (2012). The legacy of historical conflict. Evidence from Africa. Am. Polit. Sci. Rev., 108(2), 319-336.
Bukhari, l. A., & Saddaqat, M. (2007). The public investment and economic growth in the three little dragons: Evidence from heterogeneous dynamic panel data. International Journal of Business & Information,, 2(1), 57-79.
Busse, M., & C. Hefeker. (2005). Political Risk, Institutions and Foreign Direct Investment,. SSRN Electron. J.
Collier, P. (1999). On the economic consequences of civil war. Oxford Economic Papers, 51, 168-183.
Collier, P. (2007). The Bottom Billion: Why the Poorest Countries Are Failingand what Can Be Done about it,. Oxford University Press, USA.
Dash, P. (2016). The impact of public investment on private investment : Evidence from India. Journal for Decision Makers, Indian Institute of Management,, 41(4), 288-307.
Elbadawi, I. (1999, 22-23 February,). Civil wars and poverty: The role of external interventions, political rights and economic growth. Mimeo. World Bank, Washington DC. Retrieved from Email: ielbadawi@worldbank.org
Erum, N., Hussain, S., & Yousaf, A. (2016). Foreign direct investment and economic growth in Saarc countries. Journal of Asian Finance Economics and Business,, 3(4), 57-66.
J.Edgardo, C., Donald, L., & Pradhan, S. (1999). The Impact of Corruption on Investment : Predictability Matters,”. The World Bank, Washington DC, USA, 27(6), 1059–1067.
Krueger, A. (1974). the Political Economy Seeking of the Society,. Am. Econ. Rev, 64, 291–303.
Leff, N. H. (1964). Economic Development Through Bureaucratic Corruption Development. Am. Behav. Sci., 8(3), 8-14.
Mauro, P., & al. (1995, August, pp.). CORRUPTION AND GROWTH,. Q. J. Econ., 110(3), 681-712.
Pesaran, M., & Pesaran, B. (1997). Working with Microfit 4.0: Interactive Econometric Analysis. Oxford: Oxford UniversityPress.
Pesaran, M., Shin, Y., & Smith, R. J. (2001, May). Bounds testing approaches to the analysis of level relationships,. Journal of Applied Econometrics, 16, 289–326.
Rahman, A. (2015). impact of foreign direct investment on economic growth in Bangladesh: Evidence from Bangladesh. International Journal of Economics and Finance, 7(2), 178-185.
Tanzi, v., & Davoodi, H. (1997). Corruption, Public Investment, and Growth. IMF.
مواقع الانترنيت:
IMF. (2018, avril). international monetary fund World Economic Outlook. Retrieved 10 03, 2019, from Fiscal Affairs Department IMF Investment and Capital Stock Dataset,: https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/DZA?year=2018
IMF. (2019, 04 02). international monetary fund World Economic Outlook. Retrieved from Fiscal Affairs Department IMF Investment and Capital Stock Dataset,: https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/DZA?year=2018
unctadstat. (2019, 03 15). unctadstat.unctad.org. Retrieved 10 05, 2019, from https://unctadstat.unctad.org/wds/TableViewer/tableView.aspx?ReportId=96740
Alesina, P. S., Ozler, S., & Roubini, A. (1996). Political Instability and Economic Growth. Journal of Economic growth, 1(2), 189-211. doi:10.1007/BF00138862
Bakari, S., & Tiba, S. (2019). The Impact of Trade Openness, Foreign Direct Investment andDomestic Investment on Economic Growth: New Evidence from Asian Developing Countries. . MPRA Paper No. 94453, University Library of Munich, Germany.
Belloumi, M., & Alshehry, A. (2018). The Impacts of Domestic and Foreign Direct Investmentson Economic Growth in Saudi Arabia. Economies, 6(1), 18. doi:https://doi.org/10.3390/economies60l00l8.
Besley, T., & Reynal-Querol, M. (2012). The legacy of historical conflict. Evidence from Africa. Am. Polit. Sci. Rev., 108(2), 319-336.
Bukhari, l. A., & Saddaqat, M. (2007). The public investment and economic growth in the three little dragons: Evidence from heterogeneous dynamic panel data. International Journal of Business & Information,, 2(1), 57-79.
Busse, M., & C. Hefeker. (2005). Political Risk, Institutions and Foreign Direct Investment,. SSRN Electron. J.
Collier, P. (1999). On the economic consequences of civil war. Oxford Economic Papers, 51, 168-183.
Collier, P. (2007). The Bottom Billion: Why the Poorest Countries Are Failingand what Can Be Done about it,. Oxford University Press, USA.
Dash, P. (2016). The impact of public investment on private investment : Evidence from India. Journal for Decision Makers, Indian Institute of Management,, 41(4), 288-307.
Elbadawi, I. (1999, 22-23 February,). Civil wars and poverty: The role of external interventions, political rights and economic growth. Mimeo. World Bank, Washington DC. Retrieved from Email: ielbadawi@worldbank.org
Erum, N., Hussain, S., & Yousaf, A. (2016). Foreign direct investment and economic growth in Saarc countries. Journal of Asian Finance Economics and Business,, 3(4), 57-66.
J.Edgardo, C., Donald, L., & Pradhan, S. (1999). The Impact of Corruption on Investment : Predictability Matters,”. The World Bank, Washington DC, USA, 27(6), 1059–1067.
Krueger, A. (1974). the Political Economy Seeking of the Society,. Am. Econ. Rev, 64, 291–303.
Leff, N. H. (1964). Economic Development Through Bureaucratic Corruption Development. Am. Behav. Sci., 8(3), 8-14.
Mauro, P., & al. (1995, August, pp.). CORRUPTION AND GROWTH,. Q. J. Econ., 110(3), 681-712.
Pesaran, M., & Pesaran, B. (1997). Working with Microfit 4.0: Interactive Econometric Analysis. Oxford: Oxford UniversityPress.
Pesaran, M., Shin, Y., & Smith, R. J. (2001, May). Bounds testing approaches to the analysis of level relationships,. Journal of Applied Econometrics, 16, 289–326.
Rahman, A. (2015). impact of foreign direct investment on economic growth in Bangladesh: Evidence from Bangladesh. International Journal of Economics and Finance, 7(2), 178-185.
Tanzi, v., & Davoodi, H. (1997). Corruption, Public Investment, and Growth. IMF.
مواقع الانترنيت:
IMF. (2018, avril). international monetary fund World Economic Outlook. Retrieved 10 03, 2019, from Fiscal Affairs Department IMF Investment and Capital Stock Dataset,: https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/DZA?year=2018
IMF. (2019, 04 02). international monetary fund World Economic Outlook. Retrieved from Fiscal Affairs Department IMF Investment and Capital Stock Dataset,: https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/DZA?year=2018
unctadstat. (2019, 03 15). unctadstat.unctad.org. Retrieved 10 05, 2019, from https://unctadstat.unctad.org/wds/TableViewer/tableView.aspx?ReportId=96740
Published
2022-01-03
Section
Articles
