THE IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN ALGERIA AN ECONOMETRIC STUDY FOR THE PERIOD (1990–2023)

Abstract

The study aimed to measure the impact of government expenditure on economic growth in Algeria for the period (1990–2023), using the Autoregressive Distributed Lag (ARDL) model. A set of independent variables was used, namely the logarithm of government expenditure, the logarithm of gross fixed capital formation, and the logarithm of domestic credit provided to the private sector, while the logarithm of gross domestic product was used as the dependent variable.

The study concluded with several results, including the existence of a significant positive relationship between the logarithm of government expenditure and the logarithm of gross domestic product. It also found a significant positive relationship between the logarithm of gross fixed capital formation and the logarithm of gross domestic product, while the relationship between the logarithm of domestic credit provided to the private sector and the logarithm of gross domestic product was positive but not significant.