Analyzing the relationship between the development of the financial sector and economic growth in Algeria, a standard study for the period(1980-2014)
Keywords:
Financial development, economic growth, bound testing approach, , AlgeriaAbstract
This study aims to examine the short term and long term between financial development (domestic
credit and private credit and money supply) and economic growth in Algeria using time serie data for
the period 1908-2014. This analysis is based on the bound testing approach or the autoregressive
distributed lag (ARDL) given by Pesaran et al. (2001). The empirical results show that a long run
cointegration relationship between the variables. And there is a negative effect of domestic credit
private sector on economic growth, And a positive effect of money supply on economic growth in the
long term and short term. This result highlights that financial development does not promote economic
growth in Algeria
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