Financial liberalization and economic growth in Algeria: an empirical approach applied to the case of Algeria (1980-2013)
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Date
2016-06-25
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جامعة أم البواقي
Abstract
This article is a study on the impact of the financial liberalization policy on economic growth in Algeria, made on the basis of an empirical analysis of annual time series to determine the effects of this policy on rates economic growth achieved during the period between 1980 and 2013. This led us to conclude that there is no causal relationship between financial liberalization and economic growth rates achieved in Algeria during this period. This explains the weakness of the banking liberalization and opening of the capital account in Algeria, despite the implementation of a series of financial reforms, banking and financial liberalization reforms in 1990 since the release of the law No. 90-10 on money and credit. These reforms have not yielded acceptable results in improving the role of the Algerian banking and financial institutions in the growth and operation of financial resources. The improved financial and monetary indicators and economic growth rates achieved in the last two decades by Algeria, mainly due to other factors such as the rising price of oil and the volume of foreign exchange reserves.
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Keywords
Algeria; Economic growth; Financial liberalization