The Causal relationship between government spending and economic growth in Algeria during the period 1990-2018
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Date
2021-06-30
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University of Oum El Bouaghi
Abstract
We wanted through this study to measure the economic relationship between the Gross Domestic Production GDP The total expenditure of the governmental GV in Algeria During the period 1990-2018, This study is very important because it stems from the lack of studies that addressed the causal relationship between government spending and economic growth using the cointegration model, as well as giving a clear picture of how important public spending is in financing economic activity and achieving growth, especially in light of the huge development programs adopted by Algeria to achieve this purpose, World Bank data we used for data, and the Algerian National Bureau of Statistics ONS, The Use a program Eviews.10 With the method Standard Representative stability study and co integration and causality Granger. Found the results to the possibility of convergence of the two variables in the short and long term through Sample error correction VECM, With a causal in the direction of one of the GDP Toward GV Where she was The proportion of the interpretation of the variable dependent of the independent variable Acceptable.
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Keywords
GDP; Gouvernment spending; Stationarity; Causality;Co integration