التكامل الاقتصادي
Volume 14, Numéro 1, Pages 421-440
2026-03-31
An Econometric Study Of The Impact Of Household Consumption On Economic Growth In Algeria During The Period 1990–2023
Authors : Mahdaddi Brahim . Hebboul Mohamed .
Abstract
This research paper aims to study and analyse the impact of household consumption on economic growth in Algeria during the period (1990-2023), using a descriptive analytical approach to diagnose the reality of the study variables, and a standard approach using an autoregressive model for distributed lag periods. The econometric model included real gross domestic product as a dependent variable and household consumption as the main independent variable, with gross fixed capital formation, government spending, and trade openness as control variables. The results of the boundary test showed a long-term equilibrium relationship between the study variables. The estimation results also showed that household consumption has a positive and significant effect on economic growth in the short term, reflecting its role in stimulating aggregate demand in the short term. In contrast, the results revealed no significant effect of household consumption on economic growth in the long term. Furthermore, the Granger causality test indicates a unidirectional causal relationship from economic growth to household consumption.
Keywords
Household Consumption ; Economic Growth ; co-integration ; Granger Causality Test ; Algeria
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