مجلة البشائر الاقتصادية
Volume 9, Numéro 2, Pages 694-714
2023-08-31

The Effect Of Government Spending On The Unemployment Rate In Algeria In The Light Of Fluctuations In Oil Prices, Using A Model Ardl



Authors : Zerbout Amina . Kara Brahim . Bouakel Mustapha .

Abstract

This study aimed to estimate the impact of government spending on the unemployment rate in Algeria in light of fluctuations in oil prices. The autoregressive distributed lag model was relied upon to process the collected data during the period 1990-2020 using the Eviews.10 program. The study concluded that there is a weak inverse relationship between government spending and unemployment rate, as the increase in government spending led to an increase in the total demand for operating the productive system as well as for employment, which was included in the Keynesian theory. However, this relationship remains relatively limited due to dependence on the oil resource mainly for financing the general budget, and the weakness of the flexibility of the productive apparatus.

Keywords

Government spending ; Unemployment rate ; Oil prices ; Algerian economy ; ARDL model

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