The Effectiveness of Fiscal Policy in Rationalizing Imports in Algeria: An Econometric Study for the Period (1990-2023)
Abstract
This study aims to highlight the reality of imports in Algeria by measuring the impact of public revenues and expenditures on imports in Algeria during the period (1990-2023) using the ARDL model. The analytical study concluded that Algeria heavily depends on imports to finance the domestic market, with a lack of diversification in suppliers. As for the econometric study, the results of estimating the long-term relationship of the model showed that both public revenues and expenditures have a positive effect on imports in Algeria during the study period. However, the effect of public revenues was greater than that of public expenditures. This can be explained by Algeria’s heavy reliance on oil revenues for importing various goods and services. Therefore, it is necessary to diversify income sources in the economy to enable the implementation of an effective fiscal policy that contributes to increasing production and reducing the heavy dependence on foreign products.
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