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The financial liberalization: has it fostered economic growth in Algeria?

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  • Meriem TOUIL

    (Faculty of Economic, University of Ain Temouchent, Algeria)

Abstract

The estimation of the impact of financial liberalization on economic growth in Algeria during the period 1990 – 2022 by an autoregressive VAR regression model shows that the financial development indicators, which are the credits granted to the private sector and the money supply, do not influence positively on the gross domestic product while the inflation rate negatively affects the GDP. The success of financial liberalization for the benefit of economic growth is conditioned by the respect of certain preconditions such as macroeconomic stability and financial development allowing the creation of a sphere encouraging savings and local and foreign investment favoring production to get rid of the rentier nature of financing the economy which puts the banking and financial sector outside its role of financial intermediation.

Suggested Citation

  • Meriem TOUIL, 2023. "The financial liberalization: has it fostered economic growth in Algeria?," Management Intercultural, Romanian Foundation for Business Intelligence, Editorial Department, issue 51, pages 75-100, December.
    • Handle: RePEc:cmj:interc:y:2023:i:51:p:75-100
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    References listed on IDEAS

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    More about this item

    Keywords

    models of financial liberalization; economic growth; VAR (Time series models);
    All these keywords.

    JEL classification:

    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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