1. bookVolume 60 (2022): Edition 1 (March 2022)
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eISSN
2217-3668
Première parution
15 Apr 2014
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Accès libre

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

Publié en ligne: 05 Aug 2022
Volume & Edition: Volume 60 (2022) - Edition 1 (March 2022)
Pages: 95 - 117
Reçu: 05 Feb 2021
Accepté: 11 Sep 2021
Détails du magazine
License
Format
Magazine
eISSN
2217-3668
Première parution
15 Apr 2014
Périodicité
4 fois par an
Langues
Anglais
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.

Keywords

JEL Classification

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