Theoretical and Applied Economics
No. 3 / 2017 (612), Autumn
Does fiscal policy spur economic growth? Empirical evidence from Algeria
University of Abou Bekr Belkaid, Tlemcen, Algeria
Siham MATALLAH
University of Abou Bekr Belkaid, Tlemcen, Algeria
Abstract. The present paper aims to investigate the impact of fiscal policy on economic growth in Algeria over the period 1970-2015, by using Johansen cointegration test and vector error correction model (VECM). The main results reveal that both indirect taxes and productive current expenditures have a significant long-term positive impact on real GDP, while direct taxes, capital and unproductive recurrent expenditures negatively and significantly affect economic growth in the long run. Based on these findings, it could be concluded that sustainable economic growth requires serious policy measures aimed at diversifying the Algerian economy.
Contents
The European Union's strategy for increasing the living conditions of the population in the member states
Does institutional environment affect the economic development? Evidence from selected CEE countries
Causality between economic policy uncertainty and exchange rate in China with considering quantile differences
An agency theory approach on Romanian listed companies’ capital structure
What impact has free trade area on economies of ASEAN-5 countries?
Is more government debt or currency depreciation expansionary? The case of Poland
Long-memory, self-similarity and scaling of the long-term government bond yields: Evidence from Turkey and the USA
Hard currency inflows and sterilization policy in Algeria: An ARDL approach
Evaluating Indian economy’s vulnerability to currency crisis
Impact of fiscal responsibility legislations on state finances in India
Does fiscal policy spur economic growth? Empirical evidence from Algeria
Financial conditions index (FCI), inflation and growth: Some evidence
On the effects of total productivity growth of economic freedom and total resource rents: The case of both natural resource rich and OECD countries