Revue d'économie et de statistique appliquée
Volume 22, Numéro 2, Pages 141-153
2025-12-09

The Impact Of Oil Price Volatility On Government Spending In Algeria: An Econometric Analytical Study Using The Cointegration Methodology During The Period 1980-2024

Authors : Benslimane Yahia .

Abstract

The purpose of this paper is to study the effect of oil price fluctuations on government spending in Algeria during the period 1980-2024. In the analytical study, we found a synchronous cointegration relationship between the study variables. In the econometric study, we first examined the stationarity of the two variables and found that they are integrated of the same order. Subsequently, we found evidence of cointegration between them. We also found through our estimation that a relationship exists in both the short and long term, meaning that any increase in oil prices leads to an increase in government spending in the short term, while an inverse relationship exists in the long term.

Keywords

Oil price fluctuations, Cointegration, Error correction model.