Impact Of Globalization On Algerian Economic Activities: Empirical Investigation

Abstract

In this thesis, we investigate the impact of globalization and trade openness on the economic growth of Algeria by econometric testing using a Cointegration model (E-G &JJ modeling). In order to examine the existence of a causal relationship (both long run and short run) between economic growth and globalization in terms of trade openness measured by exports and imports of Algeria and industry as well, the Granger causality was used with vector auto-regression methodology along with two different approaches for testing of cointegration; Johansen‘s cointegration procedure showed that all the above-mentioned variables are co-integrated implying these macro economic variables have long-run equilibrium relationship with economic growth via GDP growth.