The main sources of inflation in Algeria econometric analysis using ARDL test approach

Abstract EN

The Algerian economy has been suffering from a low economic growth associated with a relatively high unemployment rates, and the volatility of the inflation rates.

This paper aims to reveal and determine the major sources of the inflation trend both in the short and long-term in Algeria.

For this purpose, we used ARDL bounds testing approach to investigate the existing of a co-integration relationship between the inflation and its determinants in the long-run.

The econometrics findings denoted that in the long-term, the monetary channel and the nominal exchange rate channel are the main sources of the inflationary pressures at 5% and 1% significant level, respectively.