The Impact of Government Expenditure on Poverty Rate in Algeria During the Period (1970-2015) - Empirical Study Using Simultaneous Integration with Thresholds (Co-Integration with Regime Shift ) -

Abstract

This study aims to examine the relationship between poverty rate and government spending in Algeria during de period 1970-2015 using various econometric models as Zivot-Andrews structural break test for unit roots and Gregory Hansen test for co-integration with regime shift, the results suggests that there is a co-integration relationship between the variables with one break in 1986, and there is no evidence of any effect from government spending to poverty rate both in short run and long run term.