La Revue des Sciences Commerciales
Volume 23, Numéro 2, Pages 303-318
2024-12-21

The Impact Of Oil Prices Shocks On Government Spending In Algeria During The Period (1986-2019)

Authors : Merabet Assia .

Abstract

The aim of this study is to determine the relationship between oil prices shocks and government spending on the Algerian economy within the period 1986 to 2019. Using annual data and employing Granger causality technique between oil prices and government spending, where the results confirm that there is an unidirectional causality from oil prices to government spending, and we use the vector autoregressive model, where the VAR(2) model is with high statistical quality and reliable for analysis, and according to estimates of aggregate impulse response functions, the occurrence of a positive shock in the oil prices, leads to a positive impact on government spending.

Keywords

oil prices shocks ; government spending ; granger causality ; vector autoregressive model ; impulse response functions