The impact of economic variables on household consumer spending in Algeria

Abstract

This study aims to measure the effect of economic variables (GDP per capita, unemployment rates, inflation index, and revenue from oil resources) on household consumption expenditures in Algeria for the period 1990-2018, using the econometric estimate of the economic model appropriate to the type of study according to the ARDL methodology for co-integration. The study concluded that there is a positive effect of the inflation index on the family's consumer spending, while the rest of the other economic variables (per capita GDP, unemployment rates, and oil resource revenues) have had a negative impact on the family's consumer spending. This is due to the many transformations and structural changes that the Algerian economy witnessed during the study period.