PUBLIC INVESTMENT IN HUMAN CAPITAL AND ECONOMIC GROWTH IN ALGERIA: AN EMPIRICAL STUDY USING ARDL APPROACH

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https://doi.org/10.52326/jss.utm.2022.5(2).01

UDC 336.5:331.108+330.35(65)

Mohamed Ramli, Faiçal Boutayeba, Azzeddine Nezai

Abstract. This paper examines the link between public investment in human capital and economic growth in Algeria over the period 1990 – 2017. To do so, public expenditures on education and health have been used to investigate their impact on economic growth. The study employs the autoregressive distributed lag (ARDL) approach. The main finding of this paper is that there is no cointegrating relationship between these two variables in the long run. This evidence suggests rethinking the way the public funds are devoted to the education and health sectors. This becomes today a chief priority for policy makers in order to strengthen the impact of public investment in human capital on economic growth in the future.

Keywords: Education, Health, Economic growth, ARDL, Human Capital in Algeria.

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