The Impact of Public Investments on Economic Growth in Algeria - An Empirical Study for the Period (1980-2014) -

Abstract

This study aimed to analyze the impact of public investments on economic growth based on Keynesian thought through a standard study of the Algerian economy time series data 1980-2014. To achieve this purpose, we have used the estimation of the Cobb-Douglas production function as an attempt to measure the contribution of the public investment component to economic growth and the vector auto-regression method. The study concluded that there is a weak effect of public investments on economic growth, which confirms the validity of the hypothesis that the results achieved by the state is weak compared to the amount of funds allocated for public investment.