Good governance and well-being in Algeria during the period 2000-2024

Abstract

This study uses the latest econometric techniques, in particular the ARDL model,to investigate the relationship between good governance and economic growth in Algeria for the period 2000-2024. The methodology adopted is a three-step approach. The first step consists of verifying the statistical properties of the time series using the Dickey-Fuller and Phillips-Perron unit root tests. The second step uses tests that reveal the short- and long-term relationship between governance and economic growth. The results show that the series are all integrated of order one (I (1)). They indicate the existence of:
-A strong short- and long-term correlation between good governance indicators (government effectiveness) and the level of economic growth, highlighting the dependence on public management.
-A strong short-term correlation between good governance indicators (the rule of law) and the level of economic growth.