Inflation Impact on Real Economic Growth Econometric stady relative to Algerian Economy during the period 1995-2021

Abstract

This research paper is related to the Algerian economy, it focuses on measuring the impact of inflation on economic growth through estimating the Autoregressive Distributed Lag (ARDL) model of time series gaps during the period 1995-2021. The study finds -based on the model's outputs - that the return of short-term economic growth to its long-term equilibrium value takes approximately 1.05 years. There is a significant negative and symmetrical effect of inflation rate, and a positive effect of industrial and agricultural sectors added value on real economic growth rates between the short and long terms. This implies that an increase in inflation levels up to certain thresholds affects positively the performance of the industrial and agricultural sectors in Algeria.