Oil Price Fluctuations And Their Short /long Run Impact On Algerian Economic Growth:the Ardl Model

Abstract

Abstract: This paper investigates the linear asymmetric impacts of oil price shocks on the Algerian economic growth during the period (1990-2015), using the ARDL approach. The results show that there is insignificant positive effect of oil price fluctuations on the Algerian economic growth in the long run and the short run. finally the study recommends that the Algerian government, and in order to reduce its dependency on the petroleum sector, should adopt a prudent fiscal policy toward oil prices, further more it should use its oil revenues and the financial Surpluses to develop the other economic sectors.