The asymmetric effect of fiscal policy and oil prices on GDP in Algeria : an NARDL approach 1990-2019

الملخص EN

The aim of this study is to present a brief outlook of fiscal policy concept and to measure and analyze the effect of public policies on economic growth especially during the dual shock of the COVID-19 pandemic and the oil prices plunge.

Relying on yearly data (1990-2019), we have estimated a Non-Linear Autoregressive Lag Distributed model (NARDL) to assess the positive and negative effects of the Algerian economic activity during oil prices fluctuation.

The findings of our estimation provide that public spending has an insignificant role in Algerian economics, employment rise GDP, and fewer taxes are the best to increase GDP.

However, Algeria must adopt new financial instruments to decrease the budget deficit and to solve the oil crisis.