Page 11 - Azerbaijan State University of Economics

Aboubaker Khoualed, Taher Makhloufi, Ahmed Makhloufi, Elyas Luqman: The Impact
of Foreign Direct Investment (FDI) on Economic Development: The Case of Algeria

- FDI (FDI): The data on FDI in Algeria are concentrated around their mean,
with a mean of 9.80E+08 USD, which is greater than the standard deviation
of 8.75E+08 ;
- GDP (GDP): The data on GDP in Algeria are concentrated around their mean,
with a mean of 1.15E+11, which is greater than the standard deviation of
6.21E+10;

Data Stability Study
Unit root tests are the most important method for determining the degree of integration
of the data. Therefore, the Augmented Dickey-Fuller (ADF) test was used to detect
the presence of a unit root in all study variables.

The test hypotheses are formulated as follows :
- Null Hypothesis : There is a unit root, i.e., it is non-stationary .

- Alternative Hypothesis : There is no unit root, i.e., it is stationary.

Table 4: ADF Unit Root Test Results

At the Level FDI GDP
-2.3207 -0.5512
Constant t-Statistic Prob 0.1719 0.8678
n0 n0
-2.1484 -1.9575
General and Steady Trend t-Statistic Prob 0.5006 0.6015
n0 n0
-0.8989 0.8497
Without General and t-Statistic Prob 0.3189 0.8891
Steady Trend
n0 n0
At the First Difference d(FDI) d(GDP)
-8.1534 -4.9987
Constant t-Statistic Prob 0 0.0003
*** ***
-8.3091 -4.9121
General and Steady Trend t-Statistic Prob 0 0.0022
*** ***
-8.293 -4.7642
Without General and t-Statistic Prob 0 0
Steady Trend
*** ***

Source: Compiled by the researcher depending on: outputs of EViews 12.
Note: *, **, *** indicate significance levels of 10%, 5%, and 1%, respectively, n0 not
significant.

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