Theoretical and Applied Economics
No. 2 / 2019 (619), Summer
Co-integration with regime shift between government expenditure and poverty reduction in Algeria
University center of Maghnia, Tlmecen, Algeria
Abstract. This study investigates the direct impact of government expenditure on poverty reduction in Algeria from 1970 to 2017 so as to be able to find out if the government expenditure is pro-poor people or not, the Gregory-Hansen (1996) co-integration technique allowing for the presence of potential structural breaks in data is applied to examine the long run co-movement between poverty rate and government expenditure, the results shows that there is a structural break in poverty rates in 1989 using the Zivot-Andrews unit root test and in 1972 and 1986 using CMR and LM unit root tests, and there is a co-integration relationship with one break in 1986 among the variables, the results also suggests that there is no evidence of any affect from government expenditure on poverty rate over the period of study both in short run and long run term which means that the government expenditure in Algeria is not pro-poor people and the expenditure efforts presented by the government still very limited to impulse and reduce the poverty rates and to improve the standard living for the poor people.
Contents
The education and training. Priorities of the European Union
Posted offers in exogenous networks: A theoretical application and experimental results
The role of Japan in the development of emerging markets in Asia. Key lessons learned for China
Empirical examination of the stability of expectations – Augmented Phillips Curve for developing and developed countries
The causality between economic growth and stock market in developing and developed countries: Toda-Yamamoto approach
Government failure vs. Market failure. The implications of incomplete information
Foreign direct investment and total factor productivity in South Asia
The effects of political and financial risks on foreign direct investments to the MENAT countries
Exploring the nexus between macroeconomic variables and stock market returns in Germany: An ARDL Co-integration approach
Income inequalities and economic convergence in CEE countries
Exchange rate regimes and its impact on growth: An empirical analysis of BRICS countries
Dynamics of business cycle and long-term economic growth of Pakistan
Per capita gross domestic product and welfare of Gabonese households: A VAR model with exogenous hypothesis
Co-integration with regime shift between government expenditure and poverty reduction in Algeria
Trade in a two sector endogenous growth model with two accumulating factors
What discriminates the welfare outcomes of children in India. A multiple discriminant analysis in selected states