دور_السياسة_المالية_في_جذب_الاستثمار_الأجنبي_المباشر - دراسة_حالة_الجزائر_للفترة 1990 - 2016

Abstract

Financial policy reflects a set of measures and decisions used by the financial authorities to renew the fiscal activity of the State, and fiscal policy as one of the constituent parts of economic policy plays an important role in bringing foreign direct investment through its various instruments such as public expenditure and public revenues. The role of fiscal policy in economic life varies according to the economic systems and politics prevailing in society. As a sample of these different systems, we chose to conduct a study on the fiscal policy in Algeria and its impact on attracting foreign direct investment. To determine the nature of the effect between these two variables, we have formulated a linear model and used data of Fiscal Policy, and FDI data, which we analyzed using Eviews 7. The results of our study showed a long-run relationship between the variables of fiscal policy (tax and public spending) and foreign direct investment in Algeria. The results also indicate that percentage of tax is inversely related to the flow of foreign direct investment to Algeria, while public expenditure has a direct (positive) relationship with the flow of foreign direct investment to Algeria, these results correspond to economic theory. However, these variables account for only 31% of the change in FDI inflows. This means that there are others factors that explain this change along with the elements of fiscal policy, such as the security, economic stability, the proportion of economic openness,bureaucracy...... Therefore, we believe that Algeria must eliminate the various obstacles that weaken the flow of foreign investments as a rule 49/51 and the bureaucracy as well as the provision of social services that guarantee the welfare of the foreign investors.