Economic development and social spending : a standard study using the ARDL model during the period 1970-2016

Abstract EN

The article focuses on the study of the relationship between economic development and social expenditure in Algeria in the long run based on a standard study using the correlation test and the error correction model according to the Auto Regressive Distributive Lags (ARDL) model developed by Pesaran ( 2001), by studying a range of variables specific to Algeria for the period from 1970 to 2016.

The results and the method of studying the relationship between economic development and social spending differ.

Many studies confirm the existence of a strong positive relationship between social indicators and economic growth and that economic growth occurs through the development of social policies, especially through the provision of some basic needs and effectively Such as health, education, housing and employment.

As for the results of our study, the model of the impact of social expenditure on GDP, we found the negative impact of expenditure on education, expenditure on employment and growth rate of public expenditure on economic growth in the long run.

Economic growth was positive, such as spending on the housing sector, spending on the health sector, and social support.