International journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN:2313-626X

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 Volume 6, Issue 11 (November 2019), Pages: 120-129

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 Original Research Paper

 Title: The impact of the local SMEs sector on FDI and the mediating effect of IFRS adoption in developing economies: The case of Algeria

 Author(s): Mohamed Salah Zouita 1, *, Bilal Louail 1, Youcef Mameche 2

 Affiliation(s):

 1Department of Finance and Insurance, College of Business Administration, Northern Border University, Arar, Saudi Arabia
 2Department of Accounting, College of Business Administration, Northern Border University, Arar, Saudi Arabia

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0002-7405-1623

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2019.11.015

 Abstract:

The present paper aims to empirically explore the impact of SMEs on foreign direct investment inflows and analyses the effect role of IFRS adoption on the relationship between the SMEs sector and foreign direct investment inflows in short and long run in Algeria during the period of 1970-2017. This investigation intends to fill a major gap regarding empirical literature on FDI drivers in developing countries. Using the ARDL bounds testing approach, the findings show a positive association between SMEs and foreign direct investment inflows in Algeria in the long-run. However, in terms of the role of IFRS adoption in mediating the impact of SMEs on FDI inflows in Algeria, our findings report a negative contribution of IFRS adoption of the association between SMEs and FDI inflows in both long and short run. These findings provide significant implications for regulators and policymakers in developing countries improve the business environment of their countries, manager and foreign investors in assessing the business environment in host countries and for both developing countries and academic research. 

 © 2019 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Foreign direct investment, Small and medium enterprises, IFRS adoption, The Algerian economy, ARDL model

 Article History: Received 8 May 2019, Received in revised form 4 September 2019, Accepted 11 September 2019

 Acknowledgement:

The authors gratefully acknowledge the approval and the support of this research study by the grant no: BA-2018-3-9-F-8023 from the deanship of Scientific Research at Northern Border University, Arar, K.S.A.

 Compliance with ethical standards

 Conflict of interest:  The authors declare that they have no conflict of interest.

 Citation:

 Zouita MS, Louail B, and Mameche Y (2019). The impact of the local SMEs sector on FDI and the mediating effect of IFRS adoption in developing economies: The case of Algeria. International Journal of Advanced and Applied Sciences, 6(11): 120-129

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 Figures

 Fig. 1 Fig. 2 

 Tables

 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 

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