The Influence of Fiscal Policy on Economic Growth. The Cases of Algeria and Morocco

Abstract

Because budgetary policy is considered as an important tool for influencing global macroeconomic variables, particularly the rate of economic growth. In this paper, our objective is to assess the contribution of financial policy on economic growth in Algeria and Morocco using recent econometric techniques during the period 1970 to 2018 (for Algeria) and 1990 to 2017 (for Morocco). Doing so, we specified and estimated a model that explains the impact of financial policy on economic growth (dependent variable), using tax revenues and government expenditure as explanatory variables. Our results indicate the existence of a significant effect of financial policy on economic growth in both countries.