مجلة بحوث الإدارة والاقتصاد
Volume 5, Numéro 3, Pages 143-164
2023-09-10

The Effect Of The General Budget Deficit On Economic Growth In Algeria Using The Autoregressive Distributed Lag “ardl” Model

Authors : Merouche Youcef . Bouabdelli Yacine . Harouache Zineb Imen .

Abstract

This standard study aims to test the effect of the balance of the budget deficit on economic growth in Algeria using the AutoRegressive Distributed Lag (ARDL) model. We obtained a series of annual data for each of the budget deficit and the gross domestic product during the period (1990-2020) from the reports of the Bank of Algeria; While the data of the gross domestic product, we relied on the data of the World Bank. The results of estimating a long-term model showed that there is an inverse relationship between the balance of the general budget and economic growth in the short term, as well as the existence of a soft relationship between them in the long term; While the results of the validity tests of the model proved that it is possible to rely on the results of the long-term and short-term parameters for the correct diagnosis.

Keywords

public budget ; budget deficit ; economic growth ; Algeria ; AutoRegressive Distributed Lag (ARDL) model.