The Causality Relationship Between Current Account and Government Budget Case of Algeria

Abstract

The main purpose of this paper is to analyze the relationship between the current account deficit and the budget deficit in Algerian economy, we’ve relied on the annual data for both of the budget and current balance credit over the period the period 1997-2017.

The practical results of the co-integration test emphasiszes the absence of the long-run relationship between the two variables. This coincides with the absence of Granger’s causal relation in both trends on a short-run, in the Algerian economy