Analysis and measurement of the relationship between gross fixed capital formation and economic growth in algeria for the period 1990-2018

Abstract EN

This study will analyze and measure the relationship between Gross fixed capital formation and Economic growth in Algeria, using the error correction model.

We conclude that there is a causal relationship between GFCF and GDP in Algeria within the period under study, also we find there is a long run significant relationship that exists between the variables examined, The result as indicated that A positive shock in Gross fixed capital formation of 1% will have a negative impact on the Gross domestic product, and A positive shock in Gross domestic product of 1% will have a negative impact on the Gross fixed capital formation.