مجلة إضافات إقتصادية
Volume 7, Numéro 1, Pages 673-687
2023-03-31

Causality Between Economic Growth And Bank Deposit: Evidence From Algeria

Authors : Nid Safa . Bouabdallah Ali .

Abstract

This study aims to investigate either growth-led deposits or deposit-led growth. Therefore, the purpose of this research is to investigate the direction of the relationship between economic growth and bank deposits. Granger causality is employed by using time series data of Algeria from 1964- 2020. The results show that there is no co-integration between economic growth and bank deposits, and there is no causality relationship running from deposit to economic growth. While there is a unidirectional causality running from growth to bank deposits, which means that the demand-following hypothesis for Algeria is true.

Keywords

Economic Growth ; Bank Deposit ; Granger Causality ; Algeria