Analysis for macro economic effects of foreign direct investments: Model of Algeria

In the recent period, the fact of globalization that occurred in the world economy have rapidly caused increasing of foreign direct investments and consequently helped to fulfill the required capital for developing countries through foreign direct investments.Foreign direct investments are considered not only as capital for host countries but also as source to transfer of technology, growth and employment creation. Through this way, developing countries expect to speed up their economic developing.Algeria?s external position is getting better in recent years, since therefore it does not stir up a finance trouble. The aims of the foreign investments are transfer of technology, growth of exports and keeping down unemployment.As stated above, main purpose of this studying is to analyze the effects of the foreign direct investments upon economy of hosting countries. Especially the situation of foreign direct investments in Algeria, in comparison with some neighboring countries was examined. Their effects upon Algeria?s economy also were discussed.According to analyses, as a conclusion there is not enough positive situation of macroeconomic effect of foreign direct investment in Algeria. Even though we can mention the contribution of foreign direct investment upon employment, exportation and growth, these contributions are very limited.