1. Is there a dynamic relationship between the real exchange rate and the fundamental variables on the Case of the Algerian economy?
- Author
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BOUCHETA, Yahia, ADOUKA, Lakhdar, and KCHIRID, EL Mustapha
- Subjects
FOREIGN exchange rates ,MACROECONOMICS ,ALGERIAN economy, 1962- ,GROSS domestic product ,EXTERNAL debts ,ECONOMIC equilibrium - Abstract
The objective of this paper is to test the dynamic relationship between macroeconomic variables for the Algerian economy and the real exchange rate during the period 1986-2010, based on the notions of the theory of cointegration, we will try to estimate a macroeconomic model to analyze the impact of different variables determining the real equilibrium exchange rate (RER) long-term Algeria. We are trying through this article to estimate the relationships existing between the RER, trade openness (Ouvr) term exchange (TE) Have Outside Net (NEA) and external debt (RDET) relative to GDP, the net domestic credit and the ratio of expenditure to GDP. We concluded from our study that the external debt RDET, has a significant and positive effect on the long-term real exchange rate. Outside the Net Assets are also significant in determining the real exchange rate equilibrium in Algeria. With an elasticity of 0.0267, its importance is reflected by an increase in the competitiveness of the Algerian economy (depreciation of the real exchange rate). [ABSTRACT FROM AUTHOR]
- Published
- 2014