مجلة البحوث الاقتصادية والمالية
Volume 10, Numéro 2, Pages 469-483
2023-12-31
The Effect Of Government Expenditure On Macroeconomic Stability In Algeria
Authors : Boussalem Soufiane .
Abstract
In this paper we performed a time series analysis to explain and determine the relationship between government expenditure which is a very important component of fiscal policy and macroeconomic stability in Algeria, with a period of the study being from 1970 to 2021. Statistical analysis shows that government expenditure doesn’t have a significant effect on final consumption and inflation, but it does have an impact on GDP. After estimating a VAR model to explain the relationship between government expenditure and GDP we concluded that an increase in government expenditure in Algeria has a negative impact on GDP.
Keywords
Fiscal Policy, Government Expenditure, Macroeconomic Stability.
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