The Casual Relationship Between Macroeconomic Variables and Economic Growth: Evidence from Algeria Economy

Theoretically, less developed countries that are short of domestic resources can further their economic expansion by utilizing foreign capital under conditions of perfect capital mobility, these inflows would also help equalize rate of return on capital across countries and narrow the development ga...

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Main Author:	Kacemi, Tarek
Format:	Thesis
Language:	eng eng
Published:	2012
Subjects:	HC Economic History and Conditions
Online Access:	https://etd.uum.edu.my/3549/1/s809027.pdf https://etd.uum.edu.my/3549/7/s809027.pdf
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id	my-uum-etd.3549
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Lim, Hock Eam
topic	HC Economic History and Conditions
spellingShingle	HC Economic History and Conditions Kacemi, Tarek The Casual Relationship Between Macroeconomic Variables and Economic Growth: Evidence from Algeria Economy
description	Theoretically, less developed countries that are short of domestic resources can further their economic expansion by utilizing foreign capital under conditions of perfect capital mobility, these inflows would also help equalize rate of return on capital across countries and narrow the development gap (Gupta & Islam, 1983). in the context of Algeria, is this inflow helps the domestic resources further expansion at economic growth.This paper focuses on the study by using time-series data over the period of 1970-2009 in Algeria. In this study, I used economic growth as dependent variables and export, import, FDI domestic investment were independent variable. This study analyzed the relationship between these variables using unit root test, Vector Autoregressive (VAR) and Impulse Response Function (IRF). The evidence indicates that export has positive influences on economic growth. The VAR and Impulse Response Function (IRF) show that the increases in export will have significant effect on economic growth and there are no strong relationships between FDI, import, Domestic investment and economic growth. The economic growth is influenced by its own past value. In the presence of studies, change in FDI has no positive effect on growth, so the proper monitoring of the foreign funded projects in order to avoid the misutilization of the foreign capital resources is needed. For maintaining and increasing economic growth rate, Algeria need to stabilize the macroeconomic environment, improve human capital, facilitate financial development and gradually liberalize financial sector.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Kacemi, Tarek
author_facet	Kacemi, Tarek
author_sort	Kacemi, Tarek
title	The Casual Relationship Between Macroeconomic Variables and Economic Growth: Evidence from Algeria Economy
title_short	The Casual Relationship Between Macroeconomic Variables and Economic Growth: Evidence from Algeria Economy
title_full	The Casual Relationship Between Macroeconomic Variables and Economic Growth: Evidence from Algeria Economy
title_fullStr	The Casual Relationship Between Macroeconomic Variables and Economic Growth: Evidence from Algeria Economy
title_full_unstemmed	The Casual Relationship Between Macroeconomic Variables and Economic Growth: Evidence from Algeria Economy
title_sort	casual relationship between macroeconomic variables and economic growth: evidence from algeria economy
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2012
url	https://etd.uum.edu.my/3549/1/s809027.pdf https://etd.uum.edu.my/3549/7/s809027.pdf
_version_	1747827599258681344
spelling	my-uum-etd.35492016-04-19T07:54:27Z The Casual Relationship Between Macroeconomic Variables and Economic Growth: Evidence from Algeria Economy 2012-12 Kacemi, Tarek Lim, Hock Eam Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HC Economic History and Conditions Theoretically, less developed countries that are short of domestic resources can further their economic expansion by utilizing foreign capital under conditions of perfect capital mobility, these inflows would also help equalize rate of return on capital across countries and narrow the development gap (Gupta & Islam, 1983). in the context of Algeria, is this inflow helps the domestic resources further expansion at economic growth.This paper focuses on the study by using time-series data over the period of 1970-2009 in Algeria. In this study, I used economic growth as dependent variables and export, import, FDI domestic investment were independent variable. This study analyzed the relationship between these variables using unit root test, Vector Autoregressive (VAR) and Impulse Response Function (IRF). The evidence indicates that export has positive influences on economic growth. The VAR and Impulse Response Function (IRF) show that the increases in export will have significant effect on economic growth and there are no strong relationships between FDI, import, Domestic investment and economic growth. The economic growth is influenced by its own past value. In the presence of studies, change in FDI has no positive effect on growth, so the proper monitoring of the foreign funded projects in order to avoid the misutilization of the foreign capital resources is needed. For maintaining and increasing economic growth rate, Algeria need to stabilize the macroeconomic environment, improve human capital, facilitate financial development and gradually liberalize financial sector. 2012-12 Thesis https://etd.uum.edu.my/3549/ https://etd.uum.edu.my/3549/1/s809027.pdf text eng validuser https://etd.uum.edu.my/3549/7/s809027.pdf text eng public masters masters Universiti Utara Malaysia AbdulhamidSukar, Cameron University Syed Ahmed, Cameron UniversitSeid Hassan, Murray State University (2005) THE EFFECTS OF FOREIGN DIRECT INVESTMENTON ECONOMIC GROWTH: THE CASE OF SUBSAHARA AFRICA. Abdullahi D. Ahmed, Enjiang Cheng and George Messinis (2002) The Role of Exports, FDI and Imports in Development: New Evidence from Sub-Saharan African Countries CSES WORKING PAPER No. 39 Centre for Strategic Economic Studies, Victoria University Agrawal, P. (2005). Foreign Direct Investment in South Asia: Impact on Economic Growth and Local Investment. In: E.M. 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The Casual Relationship Between Macroeconomic Variables and Economic Growth: Evidence from Algeria Economy

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