The Relationship between Government Expenditures and Revenues in Algeria During the Period (1990-2019): Granger Causality Approach

Abstract

The aim of this study is to examines the causal relationship between government revenues and expenditures in Algeria during the period 1990 to 2019. Data properties were analyzed to determine their stationarity using the Dickey-Fuller (ADF) test, Phillips-Perron test and Kwiatkowski, Phillips, Schmidt, Shin (KPSS) test, as well as the Granger Causality Test (1969) of showing the direction. The results show that there is unidirectional causal relationship between government expenditure and revenue with the direction of causality running from government revenues to expenditures.