Effectiveness Of Algerian Public Expenditure Policy In Raising The Agricultural Sector Performance (econometric Study Using The Ardl Model During The Period 1990-2022)

Abstract

This study focused on the agriculture sector as one of the Algeria’s dependent sectors for achieving food sovereignty, diversifying the national economy, and separates its dependence to oil sector. It’s analysed the impact of public expenditures as one of the most important tools of fiscal policy on the productivity of Algeria's agricultural sector. This study use the Auto Regressive Distributed Lag/ARDL model during the period 1990-2022, by considering added value of the agricultural sector as a dependent variable, while public expenditure and money supply were considered as an independent variables. It found that the impact of public spending on the productivity of agricultural sector has been positive in the long run, with a reverse and insignificant relationship between the money supply and the sector's productivity. For the short term, the model has shown a reverse correlation between the agricultural added value changes and its previous values (-1) and (-2), which explain an impact of other variables on the decision and performance of farmers, and thus causes decreasing in economic performance of agriculture sector, which requires approximately two years and five months to return to equilibrium situation.