مجلة المنتدى للدراسات والابحاث الاقتصادية
Volume 6, Numéro 2, Pages 830-839
2022-12-01

The Effect Of Government Expenditure On Poverty In Algeria During The Period 1990 - 2021

Authors : Zerrouki Djillali . Laib Yacine .

Abstract

This research paper deals with the theme of poverty in Algeria during the period of 1990 – 2021 by adopting an econometric model of two independent variables (government expenditure and inflation rate) and wealth index (household final consumption expenditure per capita HFCEPC) as a dependent variable, after confirming the existence of cointegration between the study variables a long-run regression equation was estimated based on Vector Error Correction Model approach VECM. The study concluded that there exists a significant inverse effect by both government expenditure and inflation rate on the HFCEPC, findings that have been explained by a number of previous empirical studies.

Keywords

Poverty ; government expenditure ; household final consumption expenditure per capita ; inflation rate ; Vector Error Correction Model