The Impact of Industrial Investment on Economic Growth in Algeria 1990-2023

Authors

  • Hadjoudj Abdallah Faculty of Economics, Business and Management Department of Economics, The Community Management and Local Development Laboratory, University of Mascara, Algeria.
  • Benhergal Tayeb Faculty of Economics, Business and Management Department of Economics, The Community Management and Local Development Laboratory, University of Mascara, Algeria.

DOI:

https://doi.org/10.55284/e1p7hw54

Keywords:

Algeria, ARDL model, Industrial investment, Capital Goods Imports, Economic growth.

Abstract

This study analyses the impact of industry on economic growth in Algeria, using annual data for the period (1990-2023). It is based on the Autoregressive Distributed Lag model (ARDL) presented by Pesaran et al (2001). To clarify the real relationship between economic growth and industrial investment, the focus is on investment in the steel, metal, mechanical, electrical. There is also electronic (ISMMEE) sector, imports of capital goods, and investment in agriculture and services. The study found that there is a negative impact of investment in machinery and equipment in the long run, despite the positive impact of both investments in imports of machinery and equipment and investment in ISMMEE on economic growth in the long run.

Published

2026-06-29

Issue

Vol. 2026 No. 6 (2026)

Section

Articles