Dynamique et performances des dépenses publiques en Algérie : un réexamen

Dynamics and performance of public expenditure in Algeria: a review

Abstract

The objective of this paper is to determine the impact of public spending on macroeconomic
performance in Algeria, taking into account growth rates. Using annual data covering the period
(1992-2019), the VAR model regressions reveal a positive relationship between economic
fundamentals and the dimension of government intervention designed by budgetary stimulus plans
adopted since 2001. This result can undoubtedly be explained by the role of regulator and
stabiliser of the overall economic activity played by the State on the national scene, especially when
serious threats of cyclical imbalances are looming. Given these specificities of the Algerian
economy, it is likely that these results cannot be generalised, and that these tests do not allow us to
highlight a significant causality between public spending and economic growth.