Causality between Government Expenditure and Economic Growth in Algeria: Explosive Behavior Tests and Frequency Domain Spectral Causality

The Interaction Between Financial Development and Economic Growth: A Novel Application of Transfer Entropy and Nonlinear Approach in Algeria

“…A study on Algeria investigated the causal link between government expenditure and (EG). The study did emphasize the vital role of government expenditure, which was around 20% of government size in 2017, and the significance of fiscal policy as the main macroeconomic policy tool in Algeria (Ayad et al, 2020). Thus, the study implies that government expenditure has a considerable role in the Algerian economy, and policymakers may have to cautiously consider the effect of any alterations in government expenditure on (EG) and GDP per capita in the long run.…”

The optimal government size and economic growth: A comparative study between Malaysia and South Korea

“…The second reason is that in poorer countries, the scope of government size tends to be more limited, restricting its role primarily to essential functions and thus, the relationship is more likely to be positive towards economic growth. [ 56 ], who conducted a more recent study, undertook an examination of the causal relationship between economic growth and government expenditure in Algeria, spanning the period from 1980 to 2017, employing a range of econometric methodologies. Through their co-integration analysis, they established the presence of a long-run relationship between the variables, and the causality test indicated a unidirectional causal link running from economic growth to government expenditure.…”