Public Capital Productivity in the Algerian Economy: Between the Imperative of Expansion and the Constraints of Absorptive Capacity

Bendahane, Ilyas Elazhar

المقريزي للدراسـات الاقتصادية والمـالية
Volume 10, Numéro 1, Pages 90-108
2026-06-01

Public Capital Productivity In The Algerian Economy: Between The Imperative Of Expansion And The Constraints Of Absorptive Capacity

Abstract

This study examines the impact of public capital spending on GDP growth in Algeria, given the government's reliance on a spending multiplier policy to stimulate the economy. The study employs time series analysis, the Johansen cointegration test, and the Granger causality test. The results show cointegration among the variables but no causal relationship between capital spending and GDP growth.

Keywords

Public Capital Productivity; GDP; Gross Domestic Product; capital expenditure.

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Public Capital Productivity In The Algerian Economy: Between The Imperative Of Expansion And The Constraints Of Absorptive Capacity

Abstract

Keywords

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