Determinants of Economic Growth in Algeria during the Period 1990-2022

Abstract

        This study aims to highlight the key determinants of economic growth in Algeria during the period from 1990 to 2022. Several independent variables were used, including public expenditure (PE), oil prices (OIL), and trade openness (TO), which affect economic growth (Gross Domestic Product, GDP, as the dependent variable). The study employs the Autoregressive Distributed Lag (ARDL) model and tests for the existence of both short-term and long-term equilibrium relationships between these variables.

     The study found that the most significant variables positively influencing long-term economic growth in Algeria are public expenditure (PE) and trade openness (TO), while oil prices (OIL) have a significant negative impact on long-term economic growth in Algeria.