The Effect of Fiscal Policy Tools on Economic Growth:Empirical Evidences Based Time Series Data From Algeria. The ARDL Model

Benazza, Hanaa; Benmansour, Abdellah

les cahiers du mecas
Volume 12, Numéro 2, Pages 132-138
2016-12-31

The Effect Of Fiscal Policy Tools On Economic Growth:empirical Evidences Based Time Series Data From Algeria. The Ardl Model

Authors : Benazza Hanaa . Benmansour Abdellah .

Abstract

The purpose of this study is to examine the dynamic effect of fiscal policy instruments on economic growth in algeria over the period 1990-2015.ADF and PP test are applied to test the unit root hypothesis.Using the ARDL Co-intergration technique ,the study found that there is a significant negative long run relationship between economic growth and government expenditure,and a significant positive long run relationship between economic growth and total public revenues. Finally ,the study recommends that the gouvernment should reduce its budget deficit and get rid of the circle of debt over hanging problems.