The Impact Of Inflation On Economic Growth In The Arab Maghreb Countries: An Empirical Study

Résumé: This study examines the impact of inflation on economic growth in the Maghreb countries (Algeria, Morocco, Tunisia, and Mauritania) during the period 1992 to 2022. This research relied on long-form panel econometric techniques. The results demonstrated that the study variables are in a state of cointegration, which allowed for the estimation of an error correction model. Using the FMOLS method, the study concluded that the estimated sign of the inflation parameter was negative, which is consistent with economic theory. A one-unit increase in the inflation rate leads to a 0.18% decline in economic growth. As for the unemployment rate, its sign was negative, which is also consistent with economic theory. A one-unit increase in the unemployment rate leads to a decline in economic growth by 1.19 units. The estimation result was statistically and economically acceptable.

Publié dans la revue: مجلة دفاتر اقتصادية