Page 10 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.81, # 1, 2024, pp. 4-21

Data Description of the Study
Data description is one of the stages in constructing an econometric model. It involves
defining the variables used in the model and also specifying the study period.
Based on a review of theoretical literature and previous empirical studies, the GDP
(GDP) index was determined to measure economic development, which enables
understanding the impact of FDI on economic development. For the study sample,
Algeria was chosen, and the period from 1990 to 2022 was adopted due to the
availability of data related to the study variables during this period.

Study Variables and Data Collection Sources
The study relies on an independent variable, which is FDI, and a dependent variable,
which is economic development, represented by the GDP index as shown in the
following table along with data sources:
Table 2: Study Variables and Data Sources

Indicator Definition of Variables Source
Independent Variable
FDI World Bank
(FDI) Net inflows of FDI as a percentage of total GDP. Database
Dependent Variable
GDP The sum of gross value added by all resident World Bank
(GDP) producers in the economy. Database

Source: Compiled by the researcher
Descriptive Statistics and Stability Study
Before estimating the study model, it is necessary to know the characteristics of the
data adopted in the study and the direction of the link between the two variables.

Descriptive Statistics of Study Variables
To clarify the main characteristics of the data used in the study, the obtained results
are summarized in the following table:

Table 3: Descriptive Analysis Results of Study Variables

Arithmetic Arithmetic Standard Maximum Minimum
Variables
Mean Median Deviation Limit Limit
-
FDI 9.80E+08 1.06E+09 8.75E+08 2.75E+09
5.38E+08
GDP 1.15E+11 1.17E+11 6.21E+10 2.14E+11 4.18E+10

Source: Compiled by the researcher depending on: outputs of EViews 12.

The results for the variables shown in the previous table are as follows :

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