The impact of government spending on economic growth Econometric approach to the relationship between public expenditure and economic growth in Algeria

Abstract

The objective of this research is to study the most important effects of public expenditure on economic growth through the components of these expenditures between Functionary expenditure and investment expenditure. And we use of the model of auto-regression (VAR) to test these effects. The results of this study indicate that the total public expenditure has a significant impact on economic growth. Given its classifications, the Functionary expenditure has the greatest impact on economic growth compared to investment expenditure, which is contrary to what the latter should do with greater productivity.