The impact of oil price shocks on economic growth in Algeria

This research aims to quantify the impact of oil price shocks on Algeria’s economic growth by employing the novel Dynamic Auto Regressive Distributed Lag (dynardl) approach in conjunction with the Regularized Least Square Kernel (KRLS) method, utilizing annual data spanning from 1970 to 2022. The fi...

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Main Author: Hafsa DIB
Format: Article
Language:English
Published: General Association of Economists from Romania 2024-12-01
Series:Theoretical and Applied Economics
Subjects:
Online Access: http://store.ectap.ro/articole/1803.pdf
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author Hafsa DIB
author_facet Hafsa DIB
author_sort Hafsa DIB
collection DOAJ
description This research aims to quantify the impact of oil price shocks on Algeria’s economic growth by employing the novel Dynamic Auto Regressive Distributed Lag (dynardl) approach in conjunction with the Regularized Least Square Kernel (KRLS) method, utilizing annual data spanning from 1970 to 2022. The findings indicate a notable positive influence of oil prices on economic growth, which is similarly observed with government expenditure and population growth. Conversely, the real effective exchange rate and the money supply are found to negatively impact economic growth. Further, the KRLS estimations lend robust support to the outcomes derived from the dynardl model. Analysis of counterfactual oil price shocks on GDP suggests that a positive shock of +10% in oil prices significantly boosts GDP over the long term, whereas a negative shock of -10% conversely results in a long-term decline in GDP.
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spelling doaj-art-d9b034e90ccc4f67aef1da0feeabbd7d2025-08-20T02:14:27ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292024-12-01XXXI432333818418678The impact of oil price shocks on economic growth in AlgeriaHafsa DIB0 University of Ain Temouchent Belhadj Bouchaib, Algeria This research aims to quantify the impact of oil price shocks on Algeria’s economic growth by employing the novel Dynamic Auto Regressive Distributed Lag (dynardl) approach in conjunction with the Regularized Least Square Kernel (KRLS) method, utilizing annual data spanning from 1970 to 2022. The findings indicate a notable positive influence of oil prices on economic growth, which is similarly observed with government expenditure and population growth. Conversely, the real effective exchange rate and the money supply are found to negatively impact economic growth. Further, the KRLS estimations lend robust support to the outcomes derived from the dynardl model. Analysis of counterfactual oil price shocks on GDP suggests that a positive shock of +10% in oil prices significantly boosts GDP over the long term, whereas a negative shock of -10% conversely results in a long-term decline in GDP. http://store.ectap.ro/articole/1803.pdf oil price shockseconomic growthdynamic ardlalgeria
spellingShingle Hafsa DIB
The impact of oil price shocks on economic growth in Algeria
Theoretical and Applied Economics
oil price shocks
economic growth
dynamic ardl
algeria
title The impact of oil price shocks on economic growth in Algeria
title_full The impact of oil price shocks on economic growth in Algeria
title_fullStr The impact of oil price shocks on economic growth in Algeria
title_full_unstemmed The impact of oil price shocks on economic growth in Algeria
title_short The impact of oil price shocks on economic growth in Algeria
title_sort impact of oil price shocks on economic growth in algeria
topic oil price shocks
economic growth
dynamic ardl
algeria
url http://store.ectap.ro/articole/1803.pdf
work_keys_str_mv AT hafsadib theimpactofoilpriceshocksoneconomicgrowthinalgeria
AT hafsadib impactofoilpriceshocksoneconomicgrowthinalgeria