Trying to estimate the Long-term relationship co-integration between public spending and imports in Algeria-empirical study during the period 1960-2017-

Abstract

The study aims to trying to determine the long-term complementary relationship between public spending and the development of imports in Algeria during the period 1960-2017, This is a set of econometric tools, Use a test stationary and co-integration test -Engel and Granger- and causality test, This study concluded that there is a long-term correlation between public spending and imports in Algeria during the study period, The flexibility of public spending has been positive, This means that the more public spending increases by 1%, the more imports increase by 27.3%, The study also found that imports correct the imbalance in their remaining balance value from each past 20%, In other words, when imports in the short term in T deviate from their long-term balanced value, 20% of this deviation in T+1 is corrected.