• Version English
• Download 18
• File Size 680.96 KB
• File Count 1
• Create Date July 25, 2020
• Last Updated July 25, 2020

An Investigation of Granger Causality between Government Expenditures and Revenues: The case study of Algeria (1990-2017).

BENAZZA HANAA

Abstract:
The purpose of this study is to test statistically in granger sense for the existence of causality
between government expenditures and revenues, and their effect on economic growth rates in
Algeria based on annual time series data during 1990-2017.The results show that there is a unidirectional
causality between government expenditures and revenues, from G.revenues to
G.expenditures, and the both has a significant effect on Algerian economic growth in the medium
term .Finally the study recommend the need to Accelerate the implementation of structural
economic reforms, especially now as the economic conditions in Algeria don't allow the productive
apparatus to respond to the increase in the volume of public expenditures.
Keywords: government expenditures, government revenues, Economic Growth, granger causality.
Jel Classification Codes: E62, O4.