Toda Yamamoto causality test between private small and medium entreprises, employment and economic growth in Algeria 2002-2018

الملخص EN

Small and Medium Enterprises (SME) play an important role for employment in several countries of the world, interest to employment is very important for economic growth.

The objective of this study aimed to determine if there is a relation between the private SMEs, employment, and economic growth in Algeria.

Using Toda-Yamamoto causality test on Algerian data for the period 2002-2018, the results showed that there is a unidirectional relation from private SMEs to employment, a unidirectional relation from employment to real Gross Domestic Product (GDP), and a unidirectional relation from private SMEs to Real Gross Domestic Product.

We recommend to encourage the creation of new SME and improve this sector.