Impact of Bilateral Trade between Algeria and Tunisia on Algeria’s Economic Growth (2002-2021)

Abstract

The aim of this study is to measure the impact of intra-trade between Algeria and Tunisia through the preferential agreement on economic growth in Algeria during the period (2002-2021) using the Autoregressive Distributed Lag (ARDL) methodology to estimate the relationship between the independent variables (intra-trade, inflation, government spending, and political stability) and the dependent variable (Gross Domestic Product). The study found that there is no long-term equilibrium relationship between Gross Domestic Product and intra-trade, but there is a positive effect on economic growth in the short term, meaning that intra-trade does not contribute to supporting Algeria's economic growth during the study period. Therefore, Algeria should make more effort to achieve support for intra-trade between it and Tunisia