A decade of the Algerian economy : is it really lost ?

Abstract EN

Algeria has initiated an extensive program of public investment during the last decade.

But it seems that the results of economic activity (GDP, diversification of the economy) have not been commensurate with the efforts.

Through estimating a SVAR model we have shown that the impact of the shocks of the fiscal policy (budget revenues and expenditures) have a small effect on the variables of the study.

However, the results of the study showed a positive effect on economic growth, but in the short term.

It is important to override this expansionary fiscal policy based on investment in infrastructure for a structural policy based on industry and diversification of the economy.