Government Policies And Foreign Direct Investment

Abstract

This study analyzes the influence that foreign direct investment may have on Algeria's economic growth from 1970 to 2023, considering government reforms to develop the country and improve the business climate. FDI flows have varied considerably, influenced by government policies, the legal framework for investment, and the world economy. The hydrocarbons sector remains the main attractor of FDI, but Algeria is trying to direct its investments to other economic sectors. The impact of FDI on the country's economic growth is complex. Institutional stability, the business climate and infrastructure development play a key role in the attractiveness and effectiveness of FDI. To maximize the positive effects of FDI and ensure sustainable growth, Algeria must continue and intensify its structural reforms while accelerating the diversification of its economy.