Analysis of the relationship between the optimal level of public spending and economic growth Evidence and experimental study on Algeria

This paper discusses the optimal level of public spending in Algeria, over the period 1990-2021, employing both descriptive and quantitative methods, with a particular focus on the Autoregressive Distributed Lag (ARDL) approach and the hypotheses underlying the "Armey" curve. The findings...

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Bibliographic Details
Published inTheoretical and applied economics Vol. XXXII; no. 2; pp. 313 - 327
Main Authors Mohammed BENAZZA, Djahida LAYATI
Format Journal Article
LanguageEnglish
Published General Association of Economists from Romania 01.06.2025
Subjects
algeria
ardl model
armey curve
economic growth
government intervention
the optimal size of public spending
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ISSN1841-8678
1844-0029

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Summary:This paper discusses the optimal level of public spending in Algeria, over the period 1990-2021, employing both descriptive and quantitative methods, with a particular focus on the Autoregressive Distributed Lag (ARDL) approach and the hypotheses underlying the "Armey" curve. The findings reveal that Algeria’s public spending exceeds the level suggested by the "Armey" curve, suggesting that the country’s large government size is hindering economic growth. In other words, Algeria’s spending surpasses what is required for optimal growth, thereby obstructing economic growth.
ISSN:1841-8678
1844-0029