Analyzing the Role of Electronic Payment Systems in Fostering Economic Growth in Algeria using ARDL models during the period (2007–2022)

Abstract

This study aims to identify the extent of the impact of electronic payment systems on increasing economic growth in Algeria during the period 2007–2022. Using the cointegration property according to the autoregressive-distributed lag (ARDL), the study revealed the existence of a short- and long-term balanced relationship between economic growth and electronic payment systems. The study results are as follows: • Electronic payment systems have a positive impact on economic growth in Algeria in the short term and a positive equilibrium relationship in the long term. • The electronic gross settlement system and the electronic clearing system have a positive and significant impact on the economic growth rate in the short term, and a positive but non-significant effect on the economic growth rate in the long term. • The error correction mechanism is present in the error correction model, indicating that the economic growth rate function in the short term converges toward its long-term equilibrium. The error correction coefficient is negative and significant. The study recommends increasing awareness of the culture of using electronic payment systems and their benefits in society by promoting various products and innovating new technologies. To improve customer confidence in electronic payment methods, mechanisms to reduce digital fraud should be developed.