Title: The impact of public expenditures on real exchange rate dynamics in Algeria

Authors: Mahieddine Adnan Ghecham

Addresses: Al Ain University of Science and Technology, College of Business, P.O. Box 112 612, Abu Dhabi, United Arab Emirates

Abstract: The objective of this study is to examine the role of government spending in economic diversification process of Algeria. This is achieved by investigating the impact of the government spending on the real exchange rate. This follows on works done on the topic of Dutch disease. The outcome of this study shows that although the relationship oscillates over time, the increase of the government spending leads to the depreciation of the RER. The findings underpin interesting implications with regards to the role of public finance management in the diversification of the economy of Algeria.

Keywords: public expenditures; real exchange rate; economic diversification; Dutch disease; Algeria.

DOI: 10.1504/GBER.2018.091705

Global Business and Economics Review, 2018 Vol.20 No.3, pp.308 - 326

Received: 22 Nov 2015
Accepted: 31 Oct 2016
Published online: 14 May 2018 *

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