Empirical Study of the impact of public expenditure and tax revenues on the Algerian economy during the period 2000-2015

  • براهيم بـويعقوب كُلّية العُلوم الاقتصاديّة والعُلوم التّجاريّة وعُلوم التّسيير جامعة وهران 2 محمد بن أحمد
Keywords: public expenditure, tax revenues, economic growth, cointegration, vector error correction model (VECM).


This study aims to demonstrate the impact of fiscal policy on economic growth in Algeria and evaluating its status for the period 2000 - 2015. The study was conducted using vector error correction model (VECM), the latter is based on causality test (Granger causality) and a study of Cointegration (Engle and Granger).

The results of this study show the presence of a one-way causal relationship between fiscal policy and economic growth through the variables of public expenditure, tax revenues and economic growth; they show also the presence of cointegration in the long term, which proves the effectiveness of the adopted fiscal policy in promoting economic growth during the same period.