مجلة الإقتصاد الجديد
Volume 16, Numéro 1, Pages 205-218
2025-01-01
Measuring The Impact Of The Imported Inflation Threshold On Economic Growth In Algeria During The Period: 1980-2023
Authors : Safa Mohamed .
Abstract
This study aimed to measuring the impact of the imported inflation threshold on economic growth in Algeria during the period 1980-2022. Identifying the threshold for the rate of imported inflation is crucial for implementing economic policies that allow the economy to operate within an inflationary system that promotes growth, while avoiding adverse effects when outside this threshold. The analysis identified four growth regimes: the first regime had a threshold of 0.007, with a positive effect of imported inflation (slope 0.61) at a 10% significance level. The second regime, between 0.007 and 0.01, showed a negative relationship between economic growth and imported inflation (-0.052). The third and fourth regimes were statistically insignificant. The study recommended the adoption of policies to rationalize imports, encourage local production to replace imports, and target growth within the thresholds of the growth-stimulating regime
Keywords
Economic growth, imported inflation, imported inflation threshold, Rationalize imports, Economic growth target.
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