THE IMPACT OF EXCHANGE RATE ON ECONOMIC GROWTH IN ALGERIA

Mohammed Touitou (), Yacine Laib () and Ahmed Boudeghdegh ()
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Mohammed Touitou: Faculty of Economics and Business, University of Algiers 3, Algiers
Yacine Laib: Faculty of Economics and Business, University of Algiers 3, Algiers
Ahmed Boudeghdegh: Faculty of Economics and Business, University of Jijel, Jijel

CBU International Conference Proceedings, 2019, vol. 7, issue 0, 323-330

Abstract: The transmission of changes in the exchange rate to macroeconomic performance has led to debates about their impact, particularly on growth economic. Many economists consider the exchange rate as a transmission channel of economic policy for open economies. This article focuses to determining empirically the impact of the exchange rate on economic growth. For this, we will adopt an approach in terms of the vector autoregressive model (VAR) with four variables namely, the real effective exchange rate, economic growth, financial development with credit indicators and finally the money supply. The empirical results allow us to confirm our theoretical expectations that decline in the real effective exchange rate of the dinar increases the growth economy through public spending for consumption and is stimulated by oil taxation.

Keywords: Exchange rate; Economic growth; VAR; Financial development; Money supply. (search for similar items in EconPapers)
JEL-codes: C32 E51 F31 F43 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:aad:iseicj:v:7:y:2019:i:0:p:323-330

DOI: 10.12955/cbup.v7.1381

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