Trade Openness and Economic Growth in Algeria any Relationship? Using an Autoregressive Distributed Time Lag ModelARDLDuring the Period (1990-2021)

Abstract

This study comes to investigate the long-term relationship between trade openness and
economic growth in Algeria. The study used the autoregressive model for the distributed time gaps
for the period (1990-2021), where the estimation results indicate the existence of a co-integration
relationship between the variables of the model, which are integrated of the first order. The results
of the analysis showed that there is a direct relationship between trade openness and active
employment with the rate of economic growth in the long term, Production capacities and the
inability to stimulate new projects, which cause a decline in economic growth levels.
Keywords: Trade Openness, Economic Growth, Autoregressive Distributed Time Gaps, Algerian
Economy