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The Role Of Fiscal Policy In Enhancing Economic Performance In Algeria During The Period 1985-2023: An Analytical And Econometric Study

Author

Listed:
  • Fethi Hassen Denden

    (University of Mostaganem, Algeria)

  • Kada Chenine

    (University of Mostaganem, Algeria)

Abstract

This study aims to assess the role of fiscal policy in enhancing economic performance in Algeria during the period 1985–2023 using the ARDL model. We adopted a descriptive-analytical approach by reviewing previous studies and analyzing the study variables. Subsequently, we employed a quantitative approach by modeling the relationship between fiscal policy instruments, namely government expenditures and revenues, and the economic performance indicator, represented by real GDP. The study found that government expenditures have a limited positive impact on real GDP in the long run and are not statistically significant in the short run. This suggests that expansionary fiscal policies may not be sufficiently effective in improving overall economic performance, reflecting the presence of the “crowding-out effect”. On the other hand, government revenues show a positive impact in the short run, but this effect dissipates over the long run.

Suggested Citation

  • Fethi Hassen Denden & Kada Chenine, 2025. "The Role Of Fiscal Policy In Enhancing Economic Performance In Algeria During The Period 1985-2023: An Analytical And Econometric Study," Entrepreneurship, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 13(2), pages 135-157.
    • Handle: RePEc:neo:epjour:v:13:y:2025:i:2:p:135-157
    DOI: 10.37708/ep.swu.v13i2.8
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    Keywords

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    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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