The Relationship Between Investment Climate and Economic Growth in Algeria

Abstract

This article revolves around studying the investment climate in Algeria and its relationship with its economic growth, which is considered one of the overall indicators of the economy. The study relied on the descriptive approach to describe the data on foreign direct investment flows in addition to some indicators of the investment climate in Algeria and the economic growth. Then, we analyze the previous data with the aim of determining the type of relationship between foreign direct investment flows, the investment climate, and the economic growth in Algeria. After analyzing the graphs, the study concluded that economic growth in Algeria may lead to an increase in foreign direct investment flows.

The study did not find a direct correlation between the flow of foreign direct investment and the economic growth rate during the study period, nor between investment climate indicators and growth rates.