The Effectiveness of Fiscal Policy in Attracting Foreign Direct Investment in Algeria - Econometric Study for the Period (1995-2015) -

Abstract

The foreign direct investment (FDI), is a movement of international capital flows, and one of the most important source of external financing today. Through the massive inflows which it has witnessed. These days has Become more growing and accelerating among all the countries of the world, whether developed or developing for more polarization and attractiveness. For that Algeria has made a various reforms, like changing laws to adopt the incentives, in addition provide facilities and guarantees for foreign investors. Was by the fiscal policy of all its sides taxation and spending.

The objective of this study is to measure the effectiveness of fiscal policy in attracting foreign direct investment in Algeria during the period 1995-2015 by focusing on the expenditure index from the expenditure side and the tax revenue index from the fiscal side. As well as analyzing the flow of foreign direct investment in the country, its geographical and sectorial distribution.