التكامل الاقتصادي
Volume 11, Numéro 5, Pages 240-252
2023-09-30

Measuring The Impact Of Sectoral Investment On Economic Growth In Algeria: An Attempt Using The Panel-ardl Methodology

Authors : Mahali Kamel . Badi Bahria . Hazem Nassim .

Abstract

This study aims to measure the impact of sectoral investment on economic growth in Algeria from 1996 to 2020 in five sectors: agriculture, petroleum services and operations, industry, construction, and services provided to enterprises. The study employs the Panel Autoregressive Distributed Lag (ARDL) model, leading to the adoption of the Panel Mean Group (PMG) model. The dependent variable is economic growth in each sector, while the independent variables are the gross accumulation of fixed assets and compensation of employees in each sector. The results indicate a long-term positive relationship between the gross accumulation of fixed assets and sectoral economic growth, while an insignificant inverse relationship is observed between economic growth and employee compensation.

Keywords

Sectoral investment ; economic growth ; Panel ARDL methodology ; PMG model ; the long run effect

Measuring The Impact Of Domestic Saving On Economic Growth In Algeria Using Ardl Model

Sellami Ahmed .  Bentafat Abdelhak .  Rahmane Amal . 
pages 77-109.