The impact of corruption, natural resources on economic growth: An applied study of Algeria

Layat, Djahida; Benazza, Mohammed

doi:10.19275/rsep173

Abstract

The study aims to test the relationship between corruption, natural resources on economic growth in Algeria. Using the descriptive and quantitative approach according to the Autoregressive Distributed Lag (ARDL) methodology. using quarterly data from (2003Q1 to 2021Q4). The results of this study showed that the variables: fixed capital index (FCF), general government spending (G), index of economic freedom (IEF) and Trade Openness (TO) positively and significant affects on economic growth in the short and long run, but with small values. On the other hand, the corruption index (CPI) and natural resources (NR) had a negative effect on Algerian economic growth in the short and long term.

References

A. Urbina, D., & Rodríguez, G. (2021). resources sector: empirical evidence from a Bayesian panel VAR for Latin American and Nordic countries. Journal of Economic Studies, 49(2), 346-363.
Search in Google Scholar Back to article
Adebayo, T., Akadir, S., Radmehr, M., & Awosusi, A. (2023). Re-visiting the resource curse hypothesis in the MINT economies. Environmental Science and Pollution Research, 9793–9807.
Search in Google Scholar Back to article
Auty, R. (2001). Resource Rents and Dependence in Sub-Saharan African Countries Economies. European Economic Review, 45(4), 839-846.
Search in Google Scholar Back to article
Aytekin, I. (2022). Türkiye’de Karayolu ve Demiryolu Ulaştırma Hizmetleri ile Kalkınma Arasındaki Nedensellik Analizi. Anadolu İktisat ve İşletme Dergisi, 6(1), 17-35.
Search in Google Scholar Back to article
Balassa, B. (1980). The process of industrial development and alternative development strategies. Staff working paper; no. SWP 438, World Bank Group, Washington.
Search in Google Scholar Back to article
Beatrice D, S.-K., & Siphiwo, B. (2023). Corruption’s effect on BRICS countries’ economic growth: a panel data analysis. Journal of Economics, Finance and, 28(55), 16-33.
Search in Google Scholar Back to article
Bello Ajide, K. (2022). Is natural resource curse thesis an empirical regularity for economic complexity in Africa? Resources Policy journal, 76(4), 102-122.
Search in Google Scholar Back to article
Chang, T., Irfan, M., Asif, R., & Vishal, D. (2022). Natural resources and financial development: Role of business regulations in testing the resource-curse hypothesis in ASEAN countries. Resources Policy journal, 67(2), 102-124.
Search in Google Scholar Back to article
Christa, N., & Brunnschweiler. (2008). Cursing the Blessings? Natural Resource Abundance, Institutions, and Economic Growth. World Development journal, 36(3), 399-419.
Search in Google Scholar Back to article
Dickey, D., & Fuller, w. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. journal of the Econometric Society, 1057-1072.
Search in Google Scholar Back to article
Eatzaz, A., Aman ullah, M., & Arfeen, M. (2012). Does corruption affect economic growth ? Latin american journal of economics, 49(2), 277-305.
Search in Google Scholar Back to article
Edward. B, B. (2019). Natural Resources and Economic Development. Cambridge University Press.
Search in Google Scholar Back to article
Erum, N., & Shahzad, H. (2019). Corruption, natural resources and economic growth: Evidence from OIC countries. Resources Policy journal, 63(2019), 28-43.
Search in Google Scholar Back to article
Gründler, K., & Potrafke, N. (2019). Corruption and economic growth: New empirical evidence. 60(3), 101-121.
Search in Google Scholar Back to article
Gujarati, D. (2011). Econometrics by Example (1. Edition). England: Palgrave Macmillan.
Search in Google Scholar Back to article
Hasanov, F., Ruslan, A., Taskin, D., & Elchin, S. (2023). Oil rents and non-oil economic growth in CIS oil exporters. The role of financial development. Resources Policy journal, 82(2), 103-123.
Search in Google Scholar Back to article
Khan. M. (2002). “State Failure in Developing Countries and Strategies of Institutional Reform. Dans W. Bank (Éd.), ”Towards Pro-Poor Policies: Aid, Institutions and Globalization. New York: Oxford University Press,.
Search in Google Scholar Back to article
Mauro, P. (1995). Corruption and Growth. The Quarterly Journal of Economics, 110(3), 681-712.
Search in Google Scholar Back to article
Pesaran, M., & Shin, Y. (1995). autoregressive distributed lag modeling approach to cointegration analysis. Working Paper, 3(5).
Search in Google Scholar Back to article
Phillips, P., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335-346.
Search in Google Scholar Back to article
Richard, M., & Auty. (2007). Natural resources, capital accumulation and the resource curse. Ecological Economics journal, 61(4), 627-634.
Search in Google Scholar Back to article
Shiyan, W., & Zhijie, J. (2022). Resource curse or resource blessing: Perspective on the nonlinear and regional relationships in China. Journal of Cleaner Production, 371(3), 133-153.
Search in Google Scholar Back to article
Svensson, J. (2005). Eight Questions about Corruption. The Journal of Economic Perspectives, 19(3), 19-42.
Search in Google Scholar Back to article
Tabash, M., Mesagan, E., & Farooq, U. (2022). Dynamic linkage between natural resources, economic complexity, and economic growth: Empirical evidence from Africa. Resources Policy journal, 78(3), 102-122.
Search in Google Scholar Back to article
Tiago, C., Kamiar, M., & Mehdi, R. (2011). Growth, development and natural resources: New evidence using a heterogeneous panel analysis. The Quarterly Review of Economics and Finance, 51(4), 305-318.
Search in Google Scholar Back to article
Warner, M., & Sachs, D. (1995). Natural Resource Abundance and Economic Growth. (Cambridge, Éd.) WORKING PAPER 5398.
Search in Google Scholar Back to article
Zacek, J. and Hruza, F. (2019), “The impact of EU Funds on regional economic growth of the Czech Republic”. Journal of Economics and Finance. Vol. 69, No. 1, p. 76-94.
Search in Google Scholar Back to article

The impact of corruption, natural resources on economic growth: An applied study of Algeria

Abstract

Paradigm

My account