Theoretical and Applied Economics
No. 3 / 2017 (612), Autumn
Does fiscal policy spur economic growth? Empirical evidence from Algeria
University of Abou Bekr Belkaid, Tlemcen, Algeria
Siham MATALLAH
University of Abou Bekr Belkaid, Tlemcen, Algeria
Abstract. The present paper aims to investigate the impact of fiscal policy on economic growth in Algeria over the period 1970-2015, by using Johansen cointegration test and vector error correction model (VECM). The main results reveal that both indirect taxes and productive current expenditures have a significant long-term positive impact on real GDP, while direct taxes, capital and unproductive recurrent expenditures negatively and significantly affect economic growth in the long run. Based on these findings, it could be concluded that sustainable economic growth requires serious policy measures aimed at diversifying the Algerian economy.
Keywords: fiscal policy, economic growth, Algeria, Johansen cointegration test, vector error correction model (VECM).
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Contents
- The European Union's strategy for increasing the living conditions of the population in the member states
Constantin ANGHELACHE
Mădălina Gabriela ANGHEL
- Does institutional environment
affect the economic development?
Evidence from selected CEE countries
Lejla TERZIĆ
- Causality between economic policy uncertainty and exchange
rate in China with considering quantile differences
Yin DAI
Jing-wen ZHANG
Xiu-zhen YU
Xin LI
- What impact has free trade area on economies of ASEAN-5 countries?
Abidin ÖNCEL
Raisal Fahrozi LUBİS
- Hard currency inflows and sterilization policy in Algeria:
An ARDL approach
Aissa DJEDAIET
Hicham AYAD
- Evaluating Indian economy’s vulnerability
to currency crisis
Mohana Rao BALAGA
Puja PADHI
- Does fiscal policy spur economic growth?
Empirical evidence from Algeria
Amal MATALLAH
Siham MATALLAH
