Corruption and FDI in Algeria: A Long-Run ARDL Analysis (2003–2022)

Abstract

This study investigates the impact of corruption on foreign direct investment (FDI) flows in Algeria over the period 2003–2022. Using the ARDL model and bounds testing, the analysis relies on the Corruption Perceptions Index as the principal measure of corruption. It seeks to determine whether a long-term relationship exists between corruption and FDI, assess the short-term effects of corruption, and explain these dynamics in light of Algeria’s economic specificities.