REVUE ALGERIENNE DE FINANCES PUBLIQUES
Volume 14, Numéro 1, Pages 12-29
2024-12-18
The Impact Of Government Spending On Economic Growth An Econometric Study Of The Case Of Algeria During The Period (1985-2022)
Authors : Kharroubi Mohamed . Mahouz Khadra . Senouci Benaoumeur .
Abstract
This research investigates the connection between government expenditure and economic growth in Algeria, focusing on both theoretical and empirical aspects. It examines the nature of this relationship within the framework of government spending, with particular attention to the impact of management and equipment expenditures on economic growth. The significance of the research lies in its assessment of how variations in these key components of government spending influence economic performance. On the empirical front, the study applies the Autoregressive Distributed Lag (ARDL) model, utilizing annual data spanning from 1985 to 2022. The findings from the long-term model estimation indicate a significant and robust relationship between equipment and management expenditures, reflecting the underlying economic conditions. Furthermore, the ARDL model results demonstrate that deviations from the long-term equilibrium are corrected at a rate of 14.07% annually, providing insight into the adjustment dynamics of the Algerian economy.
Keywords
Government spending, economic growth, autoregressive distributed time lag model.
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