مجلة بحوث الإدارة والاقتصاد
Volume 6, Numéro 2, Pages 121-141
2024-06-20

The Effectiveness Of Fiscal Policy In Curbing Inflation Rates: A Standard Study Of The Algerian Economy For The Period Between 1993 And 2022

Authors : Bennafla Nacera . Kadid Yakout . Sid Hayet .

Abstract

Abstract This study examined the application of Auto-regressive distributed lag model (ARDL) bound test on some selected macroeconomic variables spanning from 1990- 2022obtained from the World Bank, International Monetary Fund, Bank of Algeria . The data were analyzed using the E-views 9.0 software. F-statistic of 5.334538 was found to be higher than the critical value of 2.62in the Lower Bound I(0) and 3.79in the Upper bound I(1) at the 5 % level, thus null hypothesis was rejected. ARDL (1,1,0,0,0, 1)was found to be the best fit model for showing a long run and short-run relationship. There is a long-run relationship among INF, DEP,PP,DPI,EX,RO which means that the variables under study are co-integrated. The results showed that the increase in internal debt by 1% will lead to an increase in the inflation rate by 46%, and the tax revenues, there is a positive non-significant effect of 48% in the inflation rate.

Keywords

fiscal policy, inflation , ARDL Model