The causal relationship between public expenditures and tax revenues in Algeria during theperiod 1980-2018 : Econometric study using cointegration methodologyand Error Correction Model(ECM)

Abstract

This research paper aims to study the expected relationship between public expenditures and fiscal revenues in Algeria during the period 1980-2018, by using one of the most important econometric methods of common integration methodology and error correction model, the estimation was made according to the statistical analysis program (Eviews.09). The study concluded that there is a long-term cointegration relationship between public expenditures and fiscal revenues, especially oil taxation, and that the direction of the relationship is from the second to the first, that is, oil collection is the one that causes public expenditures in  a stark contrast to economic theory, and this confirms the specificity of the Algerian economy as a rentier economy Oil by excellence)