مجلة الإقتصاد الجديد
Volume 16, Numéro 2, Pages 349-362
2025-07-21
The Impact Of Macroeconomic Factors On Purchasing Power In Algeria: Evidence From Bootstrap Ardl Approach
Authors : Mouzaoui Aicha . Zirari Brahim .
Abstract
This paper examines the effect of some macroeconomics factors on purchasing power in Algeria from1991 to 2022. The study uses the traditional autoregressive distributed lag (ARDL) bound test and the newly-developed bootstrap autoregressive distributed lag (ARDL) testing technique as proposed by (McNown et al., 2018). Findings show that a 1% increase in minimum business wage increases purchasing power by 0.422%. In addition, It was found that a 1% increase in the explanatory variables for maximum IRG exempt wage and exchange rate decreases purchasing power by 0.236% and 0.549%, respectively. The minimum business wage will nurture the purchasing power, but the maximum IRG exempt and exchange rate will affect negatively purchasing power in the long run. The study proposes a new econometric model to examine the impact of a set of factors on purchasing power. It further employs a novel approach by utilizing the newly developed BARDL testing technique.
Keywords
purchasing power ; wage policy ; inflation ; exchange rate ; Bootstrap ARDL(BARDL)
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