The impact of the stability of the economic environment resulting from low inflation rateson enhancing domestic investment levels in the Algerian economy during the period 1990-2023

Abstract

This study aims to analyze the impact of economic environment stability, resulting from lowerinflation rates, on enhancing the level of domestic investment in the Algerian economy during the period(1990–2023) . To achieve this objective, the Autoregressive Distributed Lag (ARDL) model was employed.The results reveal that the stability of the economic environment, driven by declining inflation rates,significantly contributes to supporting domestic investment by creating a less volatile and more favorableenvironment for investors’ decisions. Furthermore, the findings indicate that the increase in the proportionof the working-age population constitutes an additional determinant in promoting investment throughexpanding the demand base and raising the level of savings.