The Impact Of Ifrs Adoption And Employment Rate On Foreign Direct Investment In Algeria Economy During The Period 1990-2017

Abstract

This paper aims to explore the impact of applying IFRSs and employment rates on foreign direct investment flows and analyze the impact of applying IFRSs on the flow of foreign direct investment in the short and long term in Algeria between 1990 and 2017. This investigation aims to fill the gap related to the empirical literature on determinants of foreign direct investment in developing countries, using the ARDL methodology. The results show that there is a positive relationship between employment and flows of foreign direct investment in Algeria in the long term. Moreover, the negative impact of applying IFRSs on foreign direct investment flows in Algeria in the same year, and the positive impact of applying IFRSs on foreign direct investment flows in Algeria for the past year. These results provide significant implications for policymakers in developing countries to improve the business environment in their own countries, directors and foreign investors in assessing the host countries' business environment and academic research