ABSTRACT
The study aimed to determine the impact of foreign direct investment (FDI) on economic development in Algeria in the short and long term by analyzing the incoming flows during the study period and demonstrating this effect by using the FARDL model. The study found that FDI positively affects the gross domestic product (GDP) in the long term, meaning it contributes to increasing economic development, as well as in the short term, where FDI had a positive impact on the GDP, thereby contributing to the increase in economic development in Algeria.

Keywords: foreign direct investment, economic development, gross domestic product, FARDL model, long-term and short-term effects.

JEL Classification: E2, E21, O16