The impact of imported inflation on domestic inflation in Algeria : an ARDL testing approach(2019-1990)‎

Abstract EN

Inflation moves between the capitalist countries through the international business cycle.

Therefore, it is exported from the capitalist countries group to the one of developing countries through the international trade movement and the mechanisms of economic integration among the advanced industrial countries, as well as mechanisms of international transfer and international prices.

In fact, the capitalist countries dominate about 75% of world trade and exports inflation to developing countries with which it deals.

The present study found out that there was about 22.

7% of domestic inflation which is inherent to exported inflation in Algeria.

In addition, it occurred that there is a direct relationship between imported inflation and domestic inflation in the short and long term.