مجلة معهد العلوم الإقتصادية
Volume 23, Numéro 2, Pages 1591-1612
2020-12-31

Impact Of Unemployment And Population Growth On Poverty In Algeria: Econometric Study During (1970-2018)

Authors : Belkacem Lynda .

Abstract

This paper studies the impact of unemployment and population growth on poverty in Algeria (period 1970-2018). The research relies on ADF tests, Johansen cointegration test and the VAR model. The results show that there is a two-way causal relationship between unemployment and poverty, and between unemployment and population growth. Whereas, the results support the absence of causal relationship between population growth and poverty. The response functions give a positive long-run relationship between unemployment and poverty, and between population growth and poverty. The variance decomposition shows that a shock in unemployment contributes to explain 19.41% of poverty variance in the tenth year, and a shock in population growth contributes to explain 9.67% of poverty variance in the end of the response period.

Keywords

unemployment ; population growth ; poverty ; Johansen cointegration test ; VAR model