Abstract
This paper seeks to investigate the causal relationship between oil prices and economic growth in Algeria. The empirical analysis starts by analyzing the time series properties of the data which is followed by examining the nature of causality among the variables. Algeria is an oil-producing rather oil-exporting country. An increase in oil price increases economic growth. This study analyzes how change in real crude oil price affects the real GDP of Algeria positively. The empirical analysis involves testing the time series characteristics of the data series (stationary) using ADF test and running the pairwise Granger causality test based on EViews software.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abosedra, S., Baghestani, H.: New evidence on the causal relationship between United States energy consumption and gross national product. J. Energy Dev. 14(2), 285–292 (1991)
Altinay, G., Karagol, E.: Structural break, unit root, and the causality between energy consumption and GDP in Turkey. Energy Econ. 26, 985–994 (2004)
Amaira, B.: The relationship of oil prices and economic growth in Tunisia: A vector error correction model analysis. The Rom. Econ. J. 43, 3–22 (2012)
Engle, R.F., et Granger, C.W.J.: Cointegration and error correction: representation, estimation, and testing. Econometrica 55(2), 251–76 (1987)
Granger, C.W.J.: Investigating causal relations by econometric models and cross spectral methods. Econometrica 36, 424–438 (1969)
Granger, C.W.J. Some recent developments in a concept of causality. J. Economet. 39, 199–211 (1988)
Author information
Authors and Affiliations
Corresponding author
Editor information
Rights and permissions
Copyright information
© 2014 Springer International Publishing Switzerland
About this paper
Cite this paper
Elmezouar, Z.C., Mazri, A., Benzaire, M., Boudi, A. (2014). Test of Causality Between Oil Price and GDP Growth in Algeria. In: Ansari, A. (eds) Advances in Applied Mathematics. Springer Proceedings in Mathematics & Statistics, vol 87. Springer, Cham. https://doi.org/10.1007/978-3-319-06923-4_19
Download citation
DOI: https://doi.org/10.1007/978-3-319-06923-4_19
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-06922-7
Online ISBN: 978-3-319-06923-4
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)