محــددات الإستثمار المحلي في الجزائر دراسة قياسية للفترة ما بين (1980-2016)

Abstract

This study aims to define determinants of the Domestic investment in Algeria during the period (1980-2016), According to economic theory we found that each of the domestic product, total final consumption, Gross domestic savings, external debt, real interest rate, inflation rate, real exchange rate, money supply, and net trade exchange index as explanatory variables for domestic investment, and After estimating the multiple regression model, the results showed that there is a multicolinearity problem, therefore loss of the efficiency characteristic, in other words, it does not have the least possible variation, thus we chose to use an alternative methods which is called the shrinkage methods To maintain as many independent variables as possible and to eliminate the problem of mulicolinearity, We have applied three methods: Ridge regression, LASSO regression and the Elastic Net regression, then choose the best estimate based on the root mean square error (RMSE).