Econometric study of the impact of the exchange rate on development in Algeria during the period 1980-2019

Abstract

This study aims to show the impact of Exchange rateon Economic developmentin during the period between 1980 - 2019 in light of the reforms and developments in the Algerian economy The study was conducted using VAR model based on time series stability test, causal relationship test and co-integration study.The results of this study showed that there is a two-way causal relationship between Exchange rate and Economic development and a positive effect of Exchange rate on economic growth rates in Algeria.

Keywords: Economic development, Exchange rate, Algerian economy, VAR