Imports and Economic Growth: Algeria as a Case Study 1990-2010

Abstract

This study aims to measure the impact of imports on the economic growth in Algeria, basing on time series from 1990 up to 2010, as the study shows that Algeria has proceeded to liberalize its trade since 1990. It indicates the Algerian imports’ tendency to EU countries and the countries of North America. The study indicates also the importance of imports in the Algerian economy since the latter is yield. The study has confirmed the contribution of each of the raw materials and industrial supplies positively on economic growth, which confirms Algeria’s adoption on imports in the productive sector to the outside world (where the contribution of each unit of the raw materials and industrial supplies was 22.21 and 5.97 in Gross Domestic Product GDP), and through this study, we have used the Error Correction Model. Finally, the study indicates that imports, through their impact on growth, modify during nearly half a year.

DOI: 10.5901/mjss.2014.v5n10p127