The Study of the Causality Between the Economic Growth and Government Expenditure in Algeria, Through Testing the Wagner’s Law During the Period 1967-2017

Authors

  • أ‌. عثمانية خضرة Ms. Atmania Khadra جامعة تبسة
  • د.آيت يحيى سمير Dr. Ait Yahia Samir جامعة العربي التبسي (تبسة)

Keywords:

Economic Growth, Government Expenditure, Wagner's law, Algeria.

Abstract

This paper attempts to analyze the relationship between economic growth and government expenditure in Algeria during the period 1967-2017 through studying the causality between these two variables. Using the Co-integration Regression and Error Correction Model, the study found that both series are stable at the first difference and are complementary at the same degree I(1), and there is a synchronous integration relationship between economic growth and government expenditure in Algeria. According to the Granger test, the study also found  that there is a causality in a one-way direction, from economic growth to government expenditure, and the equilibrium relationship is in the long run, which is in accordance with Wagner's law.

DOI

Author Biographies

أ‌. عثمانية خضرة Ms. Atmania Khadra, جامعة تبسة

كلية العلوم الاقتصادية والعلوم التجارية وعلوم التسيير

قسم العلوم الاقتصادية

دكتور محاضر درجة أ

جامعة العربي التبسي ( تبسة)

د.آيت يحيى سمير Dr. Ait Yahia Samir, جامعة العربي التبسي (تبسة)

طالبة دكتوراه

Published

2020-05-31

How to Cite

Ms. Atmania Khadra أ. ع. خ., & سمير Dr. Ait Yahia Samir د. ي. (2020). The Study of the Causality Between the Economic Growth and Government Expenditure in Algeria, Through Testing the Wagner’s Law During the Period 1967-2017. Al-Quds Open University for Administrative & Economic Research & Studies, 4(12). Retrieved from https://journals.qou.edu/index.php/eqtsadia/article/view/2310