مجلة الإقتصاد الجديد
Volume 12, Numéro 2, Pages 79-98
2021-01-15

The Relationship Between Select Macroeconomic Variables And Non-hydrocarbon Tax In Algeria

Authors : Hadjmaoui Toufik . Benatek Hanane .

Abstract

The purpose of this research paper is to investigate the effect of real effective exchange rate (REER), inflation, economic growth and financial development on non-hydrocarbon tax revenue, in Algeria over the period of 1999 to 2018. Autoregressive Distributed Lagged (ARDL) model has been applied to find out long run and short run dynamics of models. The empirical findings suggest that the non-hydrocarbon tax revenues are not greatly responsive to changes in economic growth. And indicate that the REER is an important determinant of non-hydrocarbon tax revenue. In the short run, the results showed that the inflation has a strong positive effect on non-hydrocarbon tax. Meanwhile, the REER has had a low positive impact.

Keywords

non-hydrocarbon tax ; economic growth ; financial development ; inflation ; REER