The impact of public spending and economic growth on unemployment in Algeria Standard study during the period: (1990 - 2020)

Abstract

The study aims to build an economic measurement model to study the impact of public expenditure and economic growth on unemployment in Algeria. In theory, there is a relationship and a reciprocal effect between the variables of the study, and using the model of AutoRegressive Distributed Lag (ARDL), the results of the estimation of a long-term model showed the inverse effect between the growth of unemployment constitutes one of the greatest obstacles in the vision of developing appropriate policies to eliminate unemployment, and because growth alone is not enough to reduce unemployment. Unemployment, and Algeria can also continue its policy of expansionary spending, as a tool to fight against the phenomenon of unemployment. However, the problem that remains on the table is the quality of the financial resources of the public treasury, which depend mainly on oil tax revenues, which must get rid of this dependence, to ensure the continuity of the possibilities of public financing of projects, even in the case of falling oil prices on international markets.