EKOIST Journal of Econometrics and Statistics

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DOI :10.26650/ekoist.2024.40.1249645   IUP :10.26650/ekoist.2024.40.1249645    Full Text (PDF)

The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models

Kamel Mahali

This study aims to measure the impact of sectoral investment on economic growth in Algeria through an econometric model including a panel of eight key sectors over a 25-year period from 1996 to 2020. The study uses static panel data models based on several economic variables, where the dependent variable is Gross Domestic Product (GDP) and the independent variables are Gross Fixed Capital Formation (GFCF) and Compensation of Employees (COE). The results indicate that the fixed effects model is the appropriate model; i.e., the investment in the different sectors does not have the same impact on economic growth in Algeria. After examining the validity of the fixed effects model, it was found that it suffers from cross-sectional dependence, autocorrelation, and heteroscedasticity of errors. This complication was eliminated by using fixed effects regression models with robust Driscoll and Kraay standard errors.

Keywords: Sectoral investment, economic growth, fixed effects model, random effects model, pooled data, Algeria

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APA

Mahali, K. (2024). The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models. EKOIST Journal of Econometrics and Statistics, 0(40), 12-21. https://doi.org/10.26650/ekoist.2024.40.1249645


AMA

Mahali K. The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models. EKOIST Journal of Econometrics and Statistics. 2024;0(40):12-21. https://doi.org/10.26650/ekoist.2024.40.1249645


ABNT

Mahali, K. The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models. EKOIST Journal of Econometrics and Statistics, [Publisher Location], v. 0, n. 40, p. 12-21, 2024.


Chicago: Author-Date Style

Mahali, Kamel,. 2024. “The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models.” EKOIST Journal of Econometrics and Statistics 0, no. 40: 12-21. https://doi.org/10.26650/ekoist.2024.40.1249645


Chicago: Humanities Style

Mahali, Kamel,. “The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models.” EKOIST Journal of Econometrics and Statistics 0, no. 40 (Dec. 2024): 12-21. https://doi.org/10.26650/ekoist.2024.40.1249645


Harvard: Australian Style

Mahali, K 2024, 'The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models', EKOIST Journal of Econometrics and Statistics, vol. 0, no. 40, pp. 12-21, viewed 4 Dec. 2024, https://doi.org/10.26650/ekoist.2024.40.1249645


Harvard: Author-Date Style

Mahali, K. (2024) ‘The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models’, EKOIST Journal of Econometrics and Statistics, 0(40), pp. 12-21. https://doi.org/10.26650/ekoist.2024.40.1249645 (4 Dec. 2024).


MLA

Mahali, Kamel,. “The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models.” EKOIST Journal of Econometrics and Statistics, vol. 0, no. 40, 2024, pp. 12-21. [Database Container], https://doi.org/10.26650/ekoist.2024.40.1249645


Vancouver

Mahali K. The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models. EKOIST Journal of Econometrics and Statistics [Internet]. 4 Dec. 2024 [cited 4 Dec. 2024];0(40):12-21. Available from: https://doi.org/10.26650/ekoist.2024.40.1249645 doi: 10.26650/ekoist.2024.40.1249645


ISNAD

Mahali, Kamel. “The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models”. EKOIST Journal of Econometrics and Statistics 0/40 (Dec. 2024): 12-21. https://doi.org/10.26650/ekoist.2024.40.1249645



TIMELINE


Submitted13.02.2023
Accepted30.11.2023
Published Online26.06.2024

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