Analysis of the Inconsistency in the Impact of Gross Domestic Product on Household Consumption in Algeria for the Period (1970-2017)

Authors

Boulkour Noureddine, Université 20 août 1955 Skikda - Algeria.Follow

DOI

https://doi.org/10.35192/jjoas-h.v25i2.5

Abstract

This study aimed to analyze the asymmetry in the impact of Gross Domestic Product (GDP) on family consumption in Algeria for the period (1970-2017) using the NARDL model. The study found that there are two effects of GDP on family consumption: negative and positive. It was determined that the negative impact of GDP on family consumption is greater than the positive effect in both the short and long term. Additionally, the study found that the relationship between family consumption in Algeria and the positive effects of GDP was in line with economic theory, while the relationship between family consumption and the negative effects of GDP contradicted economic theory. Therefore, the study recommended the need to control the consumption patterns of members of society, especially during periods of optimism and economic recovery, and to adapt these patterns to the national production structure and the nature of national products.

Recommended Citation

Noureddine, Boulkour (2020) "Analysis of the Inconsistency in the Impact of Gross Domestic Product on Household Consumption in Algeria for the Period (1970-2017)," Jordan Journal of Applied Science-Humanities Series: Vol. 25: Iss. 2, Article 5.
DOI: https://doi.org/10.35192/jjoas-h.v25i2.5
Available at: https://digitalcommons.aaru.edu.jo/jjoas-h/vol25/iss2/5