مجلة الاقتصاد وادارة الاعمال
Volume 10, Numéro 1, Pages 87-101
2026-06-10

Public Expenditure Efficiency In Algeria: An Econometric Time-series Analysis Using Python (2000-2024)

Authors : Mekkaoui Elhabib .

Abstract

In this study, we investigate the connection between the efficiency of public expenditures and economic growth in Algeria using a time-series econometric methodology. We use a sample of annual macroeconomic data to conduct our empirical analysis with various techniques for quantitative modeling in Python. We examine the statistical characteristics of the variables used in this analysis, i.e., the models and tests that we carry out will be based on dynamic regression models that produce heteroskedasticity-robust standard errors, combined with an examination of the causality relationship between fiscal quality and economic growth. Our results indicate a positive relationship between efficiency in public expenditures and economic performance over time, but we find varying levels of strength and duration of the association depending on the individual public spending component. Our causality analysis indicates that fiscal quality contributes an important, structural element to the long-run growth process; however, does not provide for short-run adjustments. We conclude that reallocating public resources to more productive uses and strengthening fiscal discipline through institutional mechanisms would enhance economic performance. Finally, this study contributes methodologically to the use of Python-based econometric tools for the analysis of time-series data in applied macroeconomic research.

Keywords

Public Expenditure Efficiency; Economic Growth; Time Series Analysis; Fiscal Policy; Econometric Modeling