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The relationship between natural resources rents, trade openness and economic growth in Algeria

Author

Listed:
  • Helmi Hamdi

    (Aix-Marseille Université CERGAM (4225), France)

  • Rashid Sbia

    (DULBEA, Solvay Brussels School of Economics and Management, Belgium)

Abstract

The aim of this paper is to investigate the dynamic relationship between natural resources rents and Algerian economic growth within a trivariate framework by adding trade openness as a third variable. By using cointegration and error correction model techniques, Granger causality tests reveal a bidirectional causal relationship between natural resources rents and economic growth in the short-run and the long-run as well. Moreover, we found a unidirectional causality running from trade to economic growth without any feedback effect.

Suggested Citation

  • Helmi Hamdi & Rashid Sbia, 2013. "The relationship between natural resources rents, trade openness and economic growth in Algeria," Economics Bulletin, AccessEcon, vol. 33(2), pages 1649-1659.
    • Handle: RePEc:ebl:ecbull:eb-13-00432
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    References listed on IDEAS

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    More about this item

    Keywords

    Natural resources rents; Algeria; Trade; Growth; Cointegration; ECT;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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