<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

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

Research laboratory in financial market management using automated media and Mathematics

Research laboratory in Financial Market Management Using Mathematical Methods and Automated Media

Research Laboratory in Financial Market Management Using Mathematical Methods and Automated Media

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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...

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

Publié en ligne: 05 août 2022

Pages: 95 - 117

Reçu: 05 févr. 2021

Accepté: 11 sept. 2021

DOI: https://doi.org/10.2478/ethemes-2022-0006

Mots clés
Balance of payments, Exchange rate, Interest rate, Inflation rate, ECM Approach, ARDL Model

© 2022 Dekkiche Djamal et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Publié en ligne: 05 août 2022

Pages: 95 - 117

Reçu: 05 févr. 2021

Accepté: 11 sept. 2021

DOI: https://doi.org/10.2478/ethemes-2022-0006

Mots clésBalance of payments, Exchange rate, Interest rate, Inflation rate, ECM Approach, ARDL Model

© 2022 Dekkiche Djamal et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Mots clés
Balance of payments, Exchange rate, Interest rate, Inflation rate, ECM Approach, ARDL Model