RIR_Vol 09 N 01

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Financial Sector Development And Economic Growth In Algeria: An Ardl Bounds Testing Approach 1980-2017
(University of Eloued جامعة الوادي, 2019-07-31) FAHSI, Zineb; Chibi, Abderrahim
This study empirically examines the relationship between financial sector development and economic growth in Algeria over the period 1980–2017, using the auto-regressive distributed lag approach to co-integration analysis, depending on real gross domestic product per capita as a dependent variable, broad money and domestic credit to private sector as a measure of financial development. Our results reveal that the relationship between financial development and economic growth in Algeria is not significantly different from what has been observed generally in oil-dependent economies. The finance-growth relation in Algeria is found to be insignificantly positive. These findings suggest a dire need for financial reforms in Algeria in order to improve efficiency in the financial sector so as to stimulate investment and saving and thus, long-term economic growth