EXAMINING THE RELATIONSHIP BETWEEN TRADE OPENNESS AND ECONOMIC GROWTH IN ALGERIA USING SELF-REGRESSION OF DISTRIBUTED SLOWDOWN PERIODS (ARDL) DURING THE PERIOD 1980-2022

Abstract

Objective: This research paper aims to try to measure the impact of trade openness on economic growth in Algeria during the period 1980-2022, and in order to achieve the objectives of the study, the standard approach was used through the use of the autoregressive model for distributed slowdown periods (ARDL) As for the study data, it was obtained from the World Bank Group of Statistics 2024. Theoretical Framework: The study relies on an attempt to familiarize himself with the various theoretical literature that analyzed the relationship between foreign trade liberalization and economic growth theoretically, in addition to trying to highlight previous applied studies that examined the relationship between these two variables, which we divided into studies that denied and studies that proved a relationship between economic growth and foreign trade liberalization. Method: the research is devoted to studying the relationship between economic growth and trade openness in Algeria during the period 2000-2022 in order to assert the type of relationship between the two variables. Result and discussion: The results of the study revealed a positive impact of trade openness on economic growth represented by GDP, in addition to the existence of a long-term equilibrium relationship between the variables of the study. Research Implication: The study of the subject of trade openness as a mechanism to achieve economic growth aims to understand the mechanisms of economic growth associated with the liberalization of foreign trade, analyze the effects of openness on the volume of trade exchange, exports and imports, and identify the factors affecting the achievement of economic growth through trade liberalization. As for Algeria the liberalization of foreign trade can drive economic development, improve the livelihood of the population, raise levels of economic performance and improve the quality of domestic goods that are forced to compete with sophisticated foreign goods. Originality/Value: This study analyzes the economic effects of foreign trade liberalization on economic growth in Algeria while trying to separate the results of previous studies applied to the Algerian economy on the nature of the actual relationship between these two variables.