Revue algérienne d'économie et gestion
Volume 17, Numéro 2, Pages 66-86
2023-12-31

Public Debt Effects On The Algerian Economy: Ardl Approach

Authors : Belabbas Imène . Bouyacoub Brahim . Imekhelaf Rachida .

Abstract

In this paper we investigate on the short- and long-term effects, results and consequences of public debt on the Algerian economy during the period 2000 to 2021, in particular its outcome on inflation, investment and economic growth. The empirical analysis primarily includes a dataset of 21 observations Of the Algerian state regardless public debt rising volume, where the methodology used the most recent advanced econometric methods: Auto-Regressive Distributed Lag model, focusing on the relationship between the selected variables with data gathered from the world of bank and international monetary. To test the short- and long-term effects. The results demonstrate that at this level, public debt generates incentive effects on investment in short term and long-term adverse effects on investment and on economic growth as a result of capital stock accumulation, and heightened long term interest rate in which generate inflation.

Keywords

Macroeconomic effetcts ; Public debt ; Inflation ; Investment ; Economic growth