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L’impact De L’investissement Des Revenus Pétroliers Sur La Croissance, L’inflation Et Le Chômage : Cas D’Algérie (2000-2015)
[The Impact of Oil Revenue Investment on Growth, Inflation and Unemployment: The Case of Algeria (2000-2015)]

Author

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  • BENYOUB, Mohammed

Abstract

This paper investigates the short-run and long-run relationships between four main Algerian macroeconomic variables, the investment of oil revenues, economic growth, unemployment rate, inflation rate, using the Johansen multivariate cointegration techniques as well as VAR model for the period 2000-2015. The results indicate that there is not a long relationship between these four macroeconomic variables. The impulse functions and the variance decomposition from the stationary VAR show that the investment of oil revenues is very important to short run dynamics of the Algerian economy, when there is a shock in investment of oil revenues, GDP responds positively (13%) while the unemployment rate responds negatively (11%), in the long term. This is in line with the Algerian government's investment strategy, increasing GDP and reducing the unemployment rate.

Suggested Citation

  • BENYOUB, Mohammed, 2018. "L’impact De L’investissement Des Revenus Pétroliers Sur La Croissance, L’inflation Et Le Chômage : Cas D’Algérie (2000-2015) [The Impact of Oil Revenue Investment on Growth, Inflation and Unemploym," MPRA Paper 90489, University Library of Munich, Germany, revised 05 Jul 2018.
    • Handle: RePEc:pra:mprapa:90489
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    File URL: https://mpra.ub.uni-muenchen.de/90489/1/MPRA_paper_90489.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    VAR model; oil revenues; public investment; gross domestic product; unemployment; inflation.;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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