مجلة الأصيل للبحوث الاقتصادية والإدارية

An Econometric Study Of The Relationship Between Oil Price Volatility And Public Spending In Algeria During The Period (1990–2024)

Auteurs : Heddam Feriel .

Résumé

The study aimed to examine the relationship between oil price volatility and public spending in Algeria over the period from 1990 to 2024. The analytical approach was adopted to trace the trajectory of oil prices in the international market and the evolution of public spending levels in Algeria throughout the study period. In addition, an econometric approach was employed to assess the impact of oil price fluctuations on public spending by developing an econometric model and conducting an empirical analysis within the framework of the Autoregressive Distributed Lag (ARDL) methodology. The study concluded that a significant positive long-run relationship exists between oil prices and public spending, alongside a significant negative short-run relationship. This indicates that public spending trends in Algeria are closely associated with fluctuations in oil prices in the international market. This finding is consistent with the characteristics of rentier economies, which rely heavily on revenues generated by the oil sector through petroleum taxation.

Mots clés

oil prices ; public Spending ; Oil Revenues ; Rentier economy ; ARDL Model