This empirical study examines the asymmetric effects of oil price shocks on economic growth in Algeria. The dynamic models of Non-linear Autoregressive Distribution Lags (NARDL) are used to analyze this relationship throughout 1970-2018. The results of this study reveal that there is a non-linear connection among the variables in the long run. As the empirical results of the NARDL model estimation shows that the response of real GDP to positive oil shocks is greater than the negative shocks. It is also evident that positive shocks have a low effect on economic growth in Algeria. In the short term, the results show that the effect of oil shocks on economic growth is symmetric and very weak. While the results showed that government revenue has a greater impact on economic growth than capital expenditure. This reflects the urgent need to diversify sources of income to ensure its sustainability as a first stage before focusing on the government spending aspect.Contribution/ Originality: This study contributes to the existing literature by analyzing the impact of oil price shocks on economic growth in Algeria through the use of the nonlinear approach to the cointegration of the NARDL method developed by Shin (2014). This study also departs from previous studies relating Algerian economy and oil price shocks by considering the effects of both positive and negative oil price shocks on real gross domestic product, inflation rate, government revenue and the real effective exchange rate.

Research background This paper examines the existence of Okun’s law in Algeria over the period of 1970–2020 using both the gap and differences model. Purpose The main objective of this paper is to econometrically examine, explore and test the nexus among unemployment rate and economic growth, in order to have a clear explanation about unemployment in Algeria. Research methodology Firstly, the Kapetanios unit root test and Maki cointegration test are employed for the gap model to deal with the structural breaks than the estimation of the coefficients in this case, secondly, the quantile regression is used for the differences model; finally, three categories of causality tests are used in this research. Results The findings revealed that unemployment rates are not affected by output over the period of study both in the gap and differences model. Hence, Okun’s law is not held in Algeria. Novelty The study focused on Okun’s law in different ways. This latter carries out structural breaks in both the unit root and co-integration analysis. On the other hand, the study uses the quantile regression for the first time in the examination of Okun’s law. In the same line of thought, this research introduces an asymmetric analysis in the Maki cointegration and quantile regression.

No abstract

No abstract

L'objectif principal de cet article est d'étudier les impacts des chocs des prix du pétrole sur la dynamique des cycles économiques dans l'économie algérienne (1975-2017) en utilisant un modèle MS non linéaire. Les résultats montrent que les chocs positifs augmentent la possibilité de rester dans une phase de boom, de plus, ils sont constitués comme un moyen de sortir de la récession. Cependant les chocs négatifs stimulent la durée de la période de récession et ils conduisent même à passer d’une phase d’expansion à une phase de contraction.