1. bookVolumen 60 (2022): Heft 1 (March 2022)
Zeitschriftendaten
License
Format
Zeitschrift
eISSN
2217-3668
Erstveröffentlichung
15 Apr 2014
Erscheinungsweise
4 Hefte pro Jahr
Sprachen
Englisch
Uneingeschränkter Zugang

The Impact of the Exchange Rate on Balance of Payments in Algeria: An ARDL Model Approach

Online veröffentlicht: 05 Aug 2022
Volumen & Heft: Volumen 60 (2022) - Heft 1 (March 2022)
Seitenbereich: 95 - 117
Eingereicht: 05 Feb 2021
Akzeptiert: 11 Sep 2021
Zeitschriftendaten
License
Format
Zeitschrift
eISSN
2217-3668
Erstveröffentlichung
15 Apr 2014
Erscheinungsweise
4 Hefte pro Jahr
Sprachen
Englisch
Abstract

This study aims at examining the extent to which the exchange rate impacts on balance of payments in Algeria (BoP) during the period 1980-2019, using the Auto-Regressive Distributed Lag (ARDL) model and the Error Correction Model (ECM). This approach tests the presence of a long-run relationship between the variables.A set of relevant variables, in addition to exchange rate, were used to include real interest rate, oil price, GDP per capita, Government expenditure, and inflation rate, based on previous studies of the subject. The results indicate the existance of a long-run equilibrium relationship between the dependent and independent variables. The exchange rate has a negative impact on the balance of payments in the short-run.

JEL Classification

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