المعيار
Volume 29, Numéro 2, Pages 149-161
2025-03-22

Twin Deficits Hypothesis In Algeria

Authors : Bouaoune Wafa . Hamidi Youcef .

Abstract

Algeria has consistently faced challenges with deficits in both its current account and government budget. This study explores the link between government budget and current account deficits from 1990 to 2022, this study examines the effect of fluctuations in the Algerian government's budget on its current account, utilizing the autoregressive distributed lag (ARDL) model. Findings confirm a persistent positive link between budget and current account deficits, validating the twin deficits hypothesis in Algeria's economy.

Keywords

Twin deficits ; Government budget ; Current account ; ARDL approach ; Algeria