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The relationship between natural resources rents, trade openness and economic growth in Algeria

Helmi Hamdi () and Rashid Sbia ()

Economics Bulletin, 2013, vol. 33, issue 2, 1649-1659

Abstract: The aim of this paper is to investigate the dynamic relationship between natural resources rents and Algerian economic growth within a trivariate framework by adding trade openness as a third variable. By using cointegration and error correction model techniques, Granger causality tests reveal a bidirectional causal relationship between natural resources rents and economic growth in the short-run and the long-run as well. Moreover, we found a unidirectional causality running from trade to economic growth without any feedback effect.

Keywords: Natural resources rents; Algeria; Trade; Growth; Cointegration; ECT (search for similar items in EconPapers)
JEL-codes: C5 F4 (search for similar items in EconPapers)
Date: 2013-06-30
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Related works:
Working Paper: The relationship between natural resources rents, trade openness and economic growth in algeria (2013)
Working Paper: Natural resource rents, fiscal policy and economic growth in Algeria (2012) Downloads
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