Is there a dynamic relationship between the real exchange rate and the  fundamental variables on the Case of the Algerian economy?

Yahia BOUCHETA; Lakhdar ADOUKA; El Mustapha KCHIRID

Article Details

Is there a dynamic relationship between the real exchange rate and the fundamental variables on the Case of the Algerian economy?

Authors:

Yahia BOUCHETA | Lakhdar ADOUKA | El Mustapha KCHIRID

Publisher:

Politik Ekonomik ve Sosyal Araştırmalar Merkezi

Journal:

Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi 2014 Vol.2 Issue 2, pp.1-23

Document Type:

Article

Publication Date:

3/2014

Document Language:

English

Document ID (Org No.):

2000602760

Frequency:

Bi-Annual

eISSN:

2147-7035

pISSN:

2147-6071

Abstract:

 

The objective of this paper is to test the dynamic relationship between macroeconomic variables for the Algerian economy and the real exchange rate during the period 1986-2010, based on the notions of the theory of cointegration, we will try to estimate a macroeconomic model to analyze the impact of different variables determining the real equilibrium exchange rate  RER  long-term Algeria. We are trying through this article to estimate the relationships existing between the RER, trade openness  Ouvr  term exchange  TE  Have Outside Net  NEA  and external debt  RDET  relative to GDP, the net domestic credit and the ratio of expenditure to GDP. We concluded from our study that the external debt RDET, has a significant and positive effect on the long-term real exchange rate. Outside the Net Assets are also significant in determining the real exchange rate equilibrium in Algeria. With an elasticity of 0.0267, its importance is reflected by an increase in the competitiveness of the Algerian economy  depreciation of the real exchange rate.

 

The objective of this paper is to test the dynamic relationship between macroeconomic variables for the Algerian economy and the real exchange rate during the period 1986-2010, based on the notions of the theory of cointegration, we will try to estimate a macroeconomic model to analyze the impact of different variables determining the real equilibrium exchange rate  RER  long-term Algeria. We are trying through this article to estimate the relationships existing between the RER, trade openness  Ouvr  term exchange  TE  Have Outside Net  NEA  and external debt  RDET  relative to GDP, the net domestic credit and the ratio of expenditure to GDP. We concluded from our study that the external debt RDET, has a significant and positive effect on the long-term real exchange rate. Outside the Net Assets are also significant in determining the real exchange rate equilibrium in Algeria. With an elasticity of 0.0267, its importance is reflected by an increase in the competitiveness of the Algerian economy  depreciation of the real exchange rate .

Article Details

Is there a dynamic relationship between the real exchange rate and the fundamental variables on the Case of the Algerian economy?

Authors: Yahia BOUCHETA | Lakhdar ADOUKA | El Mustapha KCHIRID

Publisher: Politik Ekonomik ve Sosyal Araştırmalar Merkezi

Journal: Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi 2014 Vol.2 Issue 2, pp.1-23

Document Type: Article

Publication Date: 3/2014

Document Language: English

Document ID (Org No.): 2000602760

Frequency: Bi-Annual

eISSN: 2147-7035

pISSN: 2147-6071

Issues

Authors:

Yahia BOUCHETA | Lakhdar ADOUKA | El Mustapha KCHIRID

Publisher:

Politik Ekonomik ve Sosyal Araştırmalar Merkezi

Journal:

Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi 2014 Vol.2 Issue 2, pp.1-23

Document Type:

Article

Publication Date:

3/2014

Document Language:

English

Document ID (Org No.):

2000602760

Frequency:

Bi-Annual

eISSN:

2147-7035

pISSN:

2147-6071