مجلة معهد العلوم الإقتصادية
Volume 23, Numéro 2, Pages 1737-1749
2020-12-31

Analysis And Measurement Of The Relationship Between Gross Fixed Capital Formation And Economic Growth In Algeria For The Period 1990-2018

Authors : Cherakrak Samir . Gaham Wahiba . Seid Fateh .

Abstract

This study will analyze and measure the relationship between Gross fixed capital formation and Economic growth in Algeria, using the error correction model. We conclude that there is a causal relationship between GFCF and GDP in Algeria within the period under study, also we find there is a long run significant relationship that exists between the variables examined, The result as indicated that A positive shock in Gross fixed capital formation of 1% will have a negative impact on the Gross domestic product, and A positive shock in Gross domestic product of 1% will have a negative impact on the Gross fixed capital formation.

Keywords

Fixed Capital Formation, Gross domestic product, Economic Growth, error correction model.