The impact of economic recovery programs on indicators of economic welfare in Algeria -An econometric study using the ARDL model for the period 2000-2020-

Zakaria Djorfi; Okba Mekhnane; Adel Bounehas

doi:10.34118/djei.v13i2.2154

Zakaria Djorfi University Center of Tipaza. Algeria
Okba Mekhnane University Center of Tipaza. Algeria
Adel Bounehas University Center of Tipaza. Algeria

DOI: https://doi.org/10.34118/djei.v13i2.2154

Keywords: public expenditures, Economic welfare, per capita GDP, ARDL model

Abstract

In light of the financial surpluses that it achieved as a result of the high oil prices, Algeria proceeded to generalize a long-run strategy through the application of an expansionary policy aimed at reviving investment dynamism in a way that would ensure the revival of macroeconomic indicators and work to raise the absorptive efficiency of the Algerian economy. Therefore, This Study aims to determine the short and long-run relationship between public expenditures and per capita gross domestic product (welfare index), during the period 2000-2020, using the ARDL model. The econometric study concluded that public expenditures have a positive impact on the per capita GDP only in the long run by 55%. In addition to, The estimated model has no econometric problems.

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