Abstract:
The analysis has focused on the question of the impact of FDI on the foreign trade of Algeria. Our study shows that the effect of FDI on the development of Algerian exports is rather significant. Growth of FDI flows corresponds to a 1% increase in exports of 0.956%. However, what remains unclear is our sense that the relationship between FDI and non-oil exports is lower compared to the situation of total exports. Correspondence is only 0.65%, while it is 0.98% for exports of hydrocarbons. A priori such a situation is normal when 98% of Algerian exports consist of oil. This work has also allowed us to see that FDI had both a positive impact on the Algerian imports by making available products locally, that the country should import their and negative, when they multiply importing operation, including incoming products in the production process. A 1% increase in FDI flows to Algeria would correspond to an increase in imports of 0.82%. We have noticed that the private sector is responsible for the bulk of imports of countries. Although its share exceeds 70%, it declined in recent years.
