The Effect of Economic Variables on the Direct Domestic Investments in Algeria An Empirical Study (1989-2009)

Rahim Hussein, Mohammed Abadi


The study aimed to test the effect of Money Supply (M2), Real Interest Rate, Population and Economic Reforms on the Direct Domestic Investments in Algeria represented by the Gross Fixed Capital Formation. The study used annual data for the period from 1989 to 2009. Where the Multiregression model was estimated using the method of Ordinary Least Squares (OLS).
The results of analysis showed that there is a positive relationship with a statistically significant between the Gross Fixed Capital Formation and population, while the real interest rate, economic reforms and M2 have been linked by significant negative relationship.


Direct domestic investments, Gross fixed capital formation, Economic reforms impacts, Economic variables impacts.

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