Determinants of public expenditure in Algeria : an ARDL cointegration approach

Abstract EN

This article aims to find the determinants of public expenditure in Algeria.

Starting from the involvement theory of public finances in the financial system, we analyses the relationship between public expenditure and financial repression level.

The specific methodology to assessing the nature of this relationship, including the relationship between public expenditure and others determining factors, is the ARDL cointegration approach.

In attendance of structural break of the 1990s, the results provide strong evidence that financial repression factor determines the public expenditure level in short-term and long-term, notably the economic growth factor, public debt, urban population, trade openness and structural break.