Modeling the relationship between small and medium-sized enterprises and economic growth in Algeria : an empirical analysis via the NARDL approach

الملخص EN

This study aims to examine the symmetric or asymmetric effect of SMEs on Algeria's growth (GR) for the period 1990 to 2019.

This empirical study adopts the nonlinear autoregressive distributed lag estimation technique (NARDL).

The short and long-run symmetry test confirms the existence of symmetric and asymmetry effects of SME on Algeria's growth.

Further, asymmetric cointegration is confirmed between small and medium enterprises and economic growth in the long run, and symmetric effect in the short run.

As expected, the impact of negative decomposition (SME-) is greater than positive decomposition.

The findings suggest that a 1 % increase in SMEs leads to an increase in economic growth by 13 %.

Similarly, the negative parameter describes 1 % decrease in SMEs causing to decrease in economic growth by 17 % for Algeria.

So, the results confirm the positive impact of SMEs on economic growth.

These results involve those policymakers who should be persuaded to increase the creation of small enterprises.