Governments adopt various policies to address multiple imbalances in different economic and social indicators, relying on their general budgets. Algeria, being a rentier economy dependent on hydrocarbon revenues, has significantly impacted its general budget due to fluctuating and sometimes collapsing oil prices. Consequently, it resorts to a policy of rationalizing expenditures to bridge the budget deficit. However, this policy also impacts various economic variables, including the trade balance
In this book, we attempt to analyze the impact of implementing a policy of rationalizing expenditures on the trade balance by addressing various concepts related to public spending and rationalization policies, as well as their relationship to the trade balance. We study the case of Algeria over the period 1990-2023 using dynamic simulation of ARDL models
Chapter Ⅰ: Rationalization of expenditures and trade balance
Chapter Ⅱ: The Impact of Expenditure Rationalization Policy on the Trade Balance - A Case Study