The Impact of FDI on Algeria’s Economic Growth

This article highlights the impact of inward Foreign Direct Investment on Algeria’s economic growth during the period 1990–2020. It uses many statistical regression models such as Linear model, Logarithmic model, Inverse model, Quadratic model, Cubic model, Compound model, Power model, S curve model, Growth model, Exponential model, and Logistic model to analyze the relationship between FDI and Algeria’s economic growth. However, all models found a weak impact of FDI on economic growth in Algeria based on the correlation criteria R, Fisher Criterion F, and fitted trend lines. Therefore, the article concluded that there is no significant influence of FDI on Algeria’s economic growth. The absence of a significant impact of foreign investment on Algeria’s economic growth reveals a weakness in the Algerian government's performance in terms of attracting FDI. This problem has been addressed and diagnosed in this article finding that the Algerian government was unable to take strategic steps to attract investments amid the lack of a qualified investment environment. The paper suggests some policy recommendations on how to improve the investment environment in Algeria. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022.