The role of foreingn direct investment in achieving economic development-algeria as a model-
NABIL BENADIDA
PRIVATE LAW - FACULTY OF LAW AND POLITICAL SCIENSE - ABD EL HAMID IBN BADIS UNIVERSITY MOSTAGANEM
Abstract
Most countries, like Algeria, seek to adopt a tight economic policy through which they depend on the interest in encouraging local production and development, and in return they work to attract foreign direct investment as a mechanism for developing the national economy so that they have a strong economy that can achieve political, social and economic stability. And for the success of attracting foreign direct investment, the state must provide a set of guarantees and concessions within its internal laws, similar to what the Algerian state did when issuing several laws in the field of investment promotion, the most important of which is Order No. 01-01 of August 20, 2001, which includes the development of amended and completed investment that He had a great role in attracting the foreign investor by setting guarantees and concessions The latter enjoyed it and the consequent establishment of the National Agency for the Development of Investments, in addition to concluding several international bilateral and multilateral agreements in the field of investment. . In addition, Law No. 16-09 of August 03, 2016 regarding the promotion of investment was issued in order to improve the investment climate and attract foreign investors, and this demonstrates the efforts made by the Algerian state to attract foreign investment because of its role in achieving economic development. And foreign direct investment in accordance with the economic concept depends on the transfer of foreign capital to work in the host countries directly in various forms, whether industrial, transformational, construction, agricultural or service units, and the profit incentive is the main driver of these investments, It is clear through this type of investment that the foreign investor, whether it is a natural person or a legal entity, carries out a commercial activity in a country, under his control and its management, whether by using his full ownership, such as setting up a commercial company or through his contribution with the national capital in a certain percentage that gives him the right to participate in the management The investment project.It is evident that the use of the term foreign direct investment indicates that there is another term, which is indirect foreign investment, which relates to investors buying shares, bonds, securities and movable values and then reselling them in the financial market when the price rises to obtain additional profits. Al-Faqih Abdul Salam Abu Qahf believes that foreign investment is indirect, which is only for individuals, bodies or companies owning some securities without exercising any kind of control or participation in organizing and managing the investment Thus it is clear that foreign direct investment ensures the foreign investor's control over the management and direction of the investment project and aims to make a profit unlike foreign indirect investment, which does not have the task of supervising and controlling the investment project as it aims to speculate, Given the importance of foreign direct investment in the country in which it is invested, because it is a source of additional financial resources and in addition to national production, in addition to achieving economic development and several other goals in various fields such as the social, economic, political, technological..etc, etc., we decided to study this research paper by asking The following problem: How effective is foreign direct investment in achieving economic development?To answer this problem, we will divide this research paper into two axes. We address in the first axis: the concept of foreign direct investment, and we address in the second axis: the role of foreign direct investment in achieving economic development. Note that Algeria will be a model in this study.
Keywords
"direct foreign investment" " economical development" " profit"
