Estimation of the GDP growth rate in Algeria 1965-1987

Abstract FRE

: The objectives of this study are firstly, to test how important is the relationship between the GDP growth rate and population growth rate, investment growth rate, and export growth rate.

Secondly, to measure the GDP growth rate response to a change in the population growth rate, the investment growth rate, and finally to the export growth rate.

Testing and measuring these relationships has an important effects on decision-making policy.

As a matter of fact, it helps policy makers to classify the importance of variables in accelerating (or slowing down) the Algerian GDP growth rate.

As well as, to allow answering this question: Why did the Algerian economic system prove non viable after many years of growth? Thus we need to understand how the amount of growth coming from a given investment level worsened so markedly over time.

This study will use a time sériés analysis of the period 1965-87.

Choice of this period is conditioned by the importance of this period of heavy central planning on the Algerian economy as well as the identification the contribution of investment and other factors to growth which require probably a switch away from simple cross-sectional régressions to a time-series studies of individual countries