مجلة الإستراتيجية والتنمية
Volume 10, Numéro 6, Pages 346-365
2020-11-14

The Impact Of The Hidden Economy On Algeria's Economic Growth - Eeconometric Study For The Period 1990-2017

Authors : Touhami Mohamed Redha .

Abstract

This research aims to study the hidden economy as a phenomenon in Algeria, Which includes all economic activities that are not subject to the control and laws of the state and thus evade paying taxes, In addition to studying the impact of this hidden economy on economic growth in Algeria 1990-2017. This study concluded that the hidden economy has had a positive effect on the official economy of Algeria during the period 1990-2017. It has played the role of catalyst for economic growth. This is due to the inter-relationships between the parallel economy and the formal economy. To explain more, while Hidden economy uses the inputs that come from the formal economy such as energy and raw materials, it injects extra money into the formal economy and pay wages to its employees. Therefore, parallel economy contributes in some way to gross national product and economic growth.

Keywords

Hidden Economy; Economic growth; GDP Function modeling.