مجلة دفاتر اقتصادية
Volume 17, Numéro 1, Pages 211-223
2026-06-02

The Interplay Between Non-oil Tax Revenues And Government Expenditure And Its Influence On Algeria's Long-term Economic Growth: An Econometric Analysis

Authors : Mennad Boulenouar Ilias Zakaria .

Abstract

This study looks at how government spending (GE) and non-oil tax revenues (NTR) affect Algeria's economic growth between 2000 and 2023, with an emphasis on how they interact (NTR_GE). The Autoregressive Distributed Lag (ARDL) model is used in the study to examine both short-term and long-term correlations between the variables. The short-term results show that non-oil tax revenues and government spending both have a negative and significant impact on economic growth, but their interaction has a positive effect, suggesting that the short-term contractionary effect of taxes can be lessened by reinvesting tax revenues through government spending. Government spending has a long-term beneficial impact on GDP while non-oil tax receipts are negligible. The interplay between revenues and government spending is negative, underscoring the significance of effectively allocating public spending. To promote sustainable economic growth, the report suggests increasing the effectiveness of fiscal policy and carefully broadening the non-oil tax base.

Keywords

Non-oil tax revenue ; Government expenditure ; Economic growth ; Algeria ; ARDL model