The impact of Algerian investment law incentives on economic diversification: An econometric study using The Quantile Regression Model (QREG)
The impact of Algerian investment law incentives on economic diversification: An econometric study using The Quantile Regression Model (QREG)

Summary/Abstract: This paper analyses the impact of Investment Law Incentives on Economic Diversification in Algeria, utilising the Quantile Regression model. The findings indicate that investment incentives significantly enhance Non-Oil GDP growth, with the impact varying across quantiles (0.250, 0.500, and 0.750). Foreign direct investment (FDI) and the Investment Laws of 2016 and 2022 exert a more significant influence on economic growth at the lower and median quantiles. These findings suggest that the implemented measures are more effective in promoting economic expansion during the early phases of diversification. Nevertheless, the positive impact diminishes at higher levels of economic output, implying that further policy refinements are essential to sustain effectiveness in more advanced areas. The study underscores the importance of strengthening regulatory frameworks and overseeing investment laws to secure the enduring diversification and advancement of Algeria's economic landscape.

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