Relationship Analysis of Trade Liberalization and Rates of Economic Growth in Algeria: A Standard Study Using Self-Regression Model of Slowed Distributed Time Gaps (ARDL) During (1974-2016)

Abstract

The transformations of world economics have shown that trade liberalization can be a key factor in promoting economic growth. The empirical results of some developing countries also revealed a long-term balance between GDP growth and trade liberalization and showed a positive impact of trade openness on long-term economic growth. Thus, according to the theory of internal growth, a long-term relationship between foreign trade can be constructed as an estimate of the economic growth function by making the decline of economic growth on the elements of trade openness, including exports. So, this study aims to initiate the diversification process of the Algerian economic structure intended to support the strategy of economic growth and trying to implement this through estimating the long-term relationship between economic growth in Algeria and some indicators of trade openness using the model (ARDL) during the period (1974-2016).