This study examines the relationship between openness, financial development, and economic growth in Algeria using the autoregressive distributed lag (ARDL) cointegration framework. The results based on the bounds testing procedure confirm that a long-run relationship between openness, financial development, and economic growth exist. Data were obtained from the World Bank Development Indicators for the period of 1980 to 2010. Importantly, our results reveal that, openness has a significantly positive effect on economic growth. Broad money which is a proxy for financial development in this study is positive but insignificantly related to economic growth. Also, both labor force and gross capital formation are insignificant. These findings suggest a dire need for financial reforms in Algeria inorder to improve efficiency in the financial sector so as to stimulate saving/investment and thus, long-term economic growth.
| Published in | International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 6) |
| DOI | 10.11648/j.ijefm.20130106.28 |
| Page(s) | 400-405 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2014. Published by Science Publishing Group |
Openness, Financial Development, Economic Growth, Algeria, ARDL
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APA Style
Miloud Lacheheb, Peter Adamu, Seth Akutson. (2014). Openness, Financial Development and Economic Growth in Algeria: An ARDL Bound Testing Approach. International Journal of Economics, Finance and Management Sciences, 1(6), 400-405. https://doi.org/10.11648/j.ijefm.20130106.28
ACS Style
Miloud Lacheheb; Peter Adamu; Seth Akutson. Openness, Financial Development and Economic Growth in Algeria: An ARDL Bound Testing Approach. Int. J. Econ. Finance Manag. Sci. 2014, 1(6), 400-405. doi: 10.11648/j.ijefm.20130106.28
AMA Style
Miloud Lacheheb, Peter Adamu, Seth Akutson. Openness, Financial Development and Economic Growth in Algeria: An ARDL Bound Testing Approach. Int J Econ Finance Manag Sci. 2014;1(6):400-405. doi: 10.11648/j.ijefm.20130106.28
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Download@article{10.11648/j.ijefm.20130106.28,
author = {Miloud Lacheheb and Peter Adamu and Seth Akutson},
title = {Openness, Financial Development and Economic Growth in Algeria: An ARDL Bound Testing Approach},
journal = {International Journal of Economics, Finance and Management Sciences},
volume = {1},
number = {6},
pages = {400-405},
doi = {10.11648/j.ijefm.20130106.28},
url = {https://doi.org/10.11648/j.ijefm.20130106.28},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130106.28},
abstract = {This study examines the relationship between openness, financial development, and economic growth in Algeria using the autoregressive distributed lag (ARDL) cointegration framework. The results based on the bounds testing procedure confirm that a long-run relationship between openness, financial development, and economic growth exist. Data were obtained from the World Bank Development Indicators for the period of 1980 to 2010. Importantly, our results reveal that, openness has a significantly positive effect on economic growth. Broad money which is a proxy for financial development in this study is positive but insignificantly related to economic growth. Also, both labor force and gross capital formation are insignificant. These findings suggest a dire need for financial reforms in Algeria inorder to improve efficiency in the financial sector so as to stimulate saving/investment and thus, long-term economic growth.},
year = {2014}
}
TY - JOUR T1 - Openness, Financial Development and Economic Growth in Algeria: An ARDL Bound Testing Approach AU - Miloud Lacheheb AU - Peter Adamu AU - Seth Akutson Y1 - 2014/01/20 PY - 2014 N1 - https://doi.org/10.11648/j.ijefm.20130106.28 DO - 10.11648/j.ijefm.20130106.28 T2 - International Journal of Economics, Finance and Management Sciences JF - International Journal of Economics, Finance and Management Sciences JO - International Journal of Economics, Finance and Management Sciences SP - 400 EP - 405 PB - Science Publishing Group SN - 2326-9561 UR - https://doi.org/10.11648/j.ijefm.20130106.28 AB - This study examines the relationship between openness, financial development, and economic growth in Algeria using the autoregressive distributed lag (ARDL) cointegration framework. The results based on the bounds testing procedure confirm that a long-run relationship between openness, financial development, and economic growth exist. Data were obtained from the World Bank Development Indicators for the period of 1980 to 2010. Importantly, our results reveal that, openness has a significantly positive effect on economic growth. Broad money which is a proxy for financial development in this study is positive but insignificantly related to economic growth. Also, both labor force and gross capital formation are insignificant. These findings suggest a dire need for financial reforms in Algeria inorder to improve efficiency in the financial sector so as to stimulate saving/investment and thus, long-term economic growth. VL - 1 IS - 6 ER -
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