THE ROLE OF FISCAL POLICY TOOLS IN ACHIEVING ECONOMIC DIVERSIFICATION IN ALGERIA DURING THE PERIOD 2000-2022
THE ROLE OF FISCAL POLICY TOOLS IN ACHIEVING ECONOMIC DIVERSIFICATION IN ALGERIA DURING THE PERIOD 2000-2022

Summary/Abstract: This study aims to track the course of fiscal policy and highlight its role in achieving economic diversification in Algeria during the period 2020-2022, in light of its reliance on the hydrocarbon sector, and given the importance of the relationship between the independent variables represented by fiscal policy tools, both expenditures and public revenues, on the dependent variable represented by economic diversification. The analytical and inductive approaches were used to measure the role of fiscal policy in achieving economic diversification, through the Autoregressive Distributed Lag (ARDL) model. The study concluded that there is a positive relationship between the tools of fiscal policy represented by (public expenditures) and economic diversification, meaning that the expansionary spending policy followed by the Algerian authorities had a positive impact on diversifying the economic base in Algeria. On the other hand, it became clear that hydrocarbon revenues and non-hydrocarbon revenues, especially tax revenues, have witnessed a noticeable increase in recent years, but public revenues do not translate the regressive relationship with economic diversification, as they are statistically insignificant due to the fluctuation of oil revenues and prices and their role in causing structural imbalance in the economy. Therefore, fiscal policy tools contribute relatively to achieving economic diversification.

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