The Contribution of Foreign Direct Investment in Transforming Single-Sector Economies Towards Diversification: A case study of Algeria during the period
Keywords:
Foreign Direct Investment, Economic Diversification, Export Diversification, ARDL ModelAbstract
The purpose of this research is to use the Autoregressive Distributed Lag (ARDL) model to investigate and evaluate the effects of foreign direct investment (FDI) on economic diversification in Algeria from 1995 to 2023. Investigating the long-term equilibrium connection between the two variables under examination is another goal of the research.
The results show that FDI has a detrimental effect on economic diversity over the long term, indicating that FDI has not been a beneficial force behind economic diversification.
