Les cahiers du CREAD
Volume 38, Numéro 3, Pages 357- 378
2022-07-06
Authors : Chekouri Sidi Mohammed . Chibi Abderrahim . Benbouziane Mohamed .
This paper aims to examine the growth-government spending nexus for Algeria. Our empirical investigation follows the endogenous growth literature by using GDP growth rate as dependent variable and government expenditure as a share of GDP as the main explanatory variable. We then perform the Hansen’s (2017) regression kink model with an unknown threshold to estimate the optimal government size during the period 1973-2020. The obtained results confirm the validity of the Armey curve hypothesis in the case of Algeria, and suggest an estimated government size that maximizes economic growth around 30.4 percent of GDP. Accordingly, since Algeria has attained its optimal level of government size, it seems to be more important for authorities to improve the efficiency of government expenditure.
Government spending ; Economic Growth ; Armey Curve ; Regression Kink Model ; Algeria
بوسالم أحلام
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عابد يوسف
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ص 117-132.
Yahia Zeghoudi
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pages 74-88.
Said Houari Amel
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pages 257-268.