Analysis of the Transitional Dynamics of Business Cycles in Algeria and their Reactions to Oil Price Shocks: Markov Switching Model

  • Manel Attouchi Univeristy of Sidi-Bel-Abbes
  • Mohamed Driouche Dahmani Univeristy of Sidi-Bel-Abbes
Keywords: Oil price shocks, Business Cycles, Markov Switching Model, Algeria

Abstract

The aim of this paper is to study the impacts of oil price shocks on business cycles dynamics in Algerian economy (1975-2017) by using non-linear MS model. The results show that positive shocks increase the possibility of staying in a boom phase, and they are also constituted as a way out of recession. However, negative shocks stimulate the duration of the recession and even lead to a shift from an expansion to a contraction phase.

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References

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Published
2020-06-18
How to Cite
Attouchi, M., & Dahmani, M. D. (2020). Analysis of the Transitional Dynamics of Business Cycles in Algeria and their Reactions to Oil Price Shocks: Markov Switching Model . Dirassat Journal Economic Issue, 11(2), 507-523. https://doi.org/10.34118/djei.v11i2.725
Section
Articles