The effect of government expenditure on poverty in algeria during the period 1990-2021

Abstract EN

This research paper deals with the theme of poverty in Algeria during the period of 1990 – 2021 by adopting an econometric model of two independent variables (government expenditure and inflation rate) and wealth index (household final consumption expenditure per capita HFCEPC) as a dependent variable, after confirming the existence of cointegration between the study variables a long-run regression equation was estimated based on Vector Error Correction Model approach VECM.

The study concluded that there exists a significant inverse effect by both government expenditure and inflation rate on the HFCEPC, findings that have been explained by a number of previous empirical studies.