The Impact Of International Capital Flows On The Economic Growth In Algeria During The Period 1990-2018

Abstract

This study examined the effect of international capital flows on economic growth in Algeria for the period, 1990 to 2018. This study relied on four core channels of international capital flows which includes foreign direct investment (FDI), official development assistance (ODA), personal remittances (REM), and external debt stock (EXTDS) into Algeria. We found that all channels of international capital flows were not statistically significant in the short and long-run except the foreign direct investment. We result from this study that Algeria needs deep reforms in order to attract more foreign capital, especially creating an appropriate environment In order for these flows to contribute substantially to economic growth