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ISSN: 2333-9721
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-  2017 

The Dynamic Interactions Among Trade Openness and Economic Growth: Evidence from Algeria

Keywords: Exports, Imports, Trade Openness, Economic Growth, Gross Domestic Product, Econometric Models, Times Series

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Abstract:

The aim of this paper is to try to measure the impact of the trade openness on the economic growth in Algeria using the annual data for the period (1980?-2015). In this intent, we considered three openness measures: the ratio of exports to GDP, the ratio of imports to GDP and the ratio of all the exports and the imports to GDP since that, the GDP per capita in real terms is used as an indicator of the economic growth. This analysis is based by the Fully Modified Ordinary Least Squares method said (FMOLS); The empirical results revealed the existence of long-term relationship between the real GDP per capita and Trade liberalization, and show that the trade openness has a significantly positive impact on the economic growth in Algeria, this result highlights that trade openness promote economic growth in Algeria.

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