أبحاث إقتصادية معاصرة
Volume 8, Numéro 2, Pages 537-560
2025-11-10

Globalisation And Financial Development As Potential Drivers Of Economic Growth In Algeria

Authors : Hemche Omar . Djafri Omar . Dahmani Fatema .

Abstract

This study analyses the impact of globalisation, financial development and fixed capital accumulation on economic growth in Algeria over the period 1970-2023 using the ARDL approach and FMOLS and CCR tests. The results show that globalisation and financial development have a positive and significant effect on growth, while fixed capital has a negative impact, reflecting inefficient investment. Public spending, on the other hand, contributes positively to growth. The study recommends adopting policies that promote economic openness, financial system efficiency and better targeting of investment towards productive sectors to ensure sustainable growth.

Keywords

Economic growth ; globalisation ; financial development ; fixed capital ; Algeria