This study investigates the role of Human Capital (HC) to inward Foreign Direct Investment (FDI) in Algeria and the ways to improve it and used annual time series secondary data over the period of 2000-2019. The literature determines the importance of HC, determinants of FDI and the relationship between HC and inward FDI in Algeria. A multiple regression model is employed to estimate the relationship between the role of HC and inward FDI in Algeria. Accordingly, the research considers inward FDI as a dependent variable and HC, corruption and bureaucracy, inflation, political situation, GDP, infrastructure and natural resources as independent variables. The natural resources are used as dummy variable. The regression results indicate that the HC, corruption and bureaucracy, political situation have a positive significant effect on inward FDI in Algeria but HC played an important role than the others to attract FDI in the country.
Keywords: Inward FDI, Human Capital, Algeria, GDP Growth, Inflation, Political Situation.