The Relationship between government expenditure and gross domestic product in Algeria : test study for Wagner's law and Keynesian hypothesis during the period 1991-2015

الملخص EN

The present study aims to investigate the causal relationship between government expenditure and gross domestic product in Algeria during 1991-2015 and to try both the Keynesian hypothesis and the Wagner's law, by analyzing regression using the statistical program (SPSS).

The results of the study have showed that government expenditure negatively affects GDP, and this is not consistent with the economic theory and thus not realization of the Keynesian hypothesis.

The study also found that the Keynesian hypothesis was not achieved by using the economic classification of expenditures in Algeria.

Also, the results of the study showed that gross domestic product (GDP) negatively affects government expenditure, and therefore the failure of the Wagner's law in the Algerian economy.