Business Studies Journal (Print ISSN: 1944-656X; Online ISSN: 1944-6578)


The relationship between agricultural production and industrial production concerning economic growth using the ARDL model, case study of Algeria for the period 2000-2019

Author(s): Yousfat Ali

This study aims to measure and determine the nature of the relationship between agricultural production and industrial production towards economic growth in Algeria during the period 2000-2019 using the ARDL model. The variables adopted in the study are: GDP growth, The Agricultural Sector Value Added, The Industrial Sector Value Added. Relying on econometric methods, the ARDL methodology is adopted for the co-integration between the study variables. The results revealed that the time series for all variables are stable in the first difference I (1), and the existence of a long-term equilibrium relationship between all variables. In addition, the relationship between agriculture and industry towards economic growth is positive and significant in the short term with one or two lagging period that the effect does not appear directly on the economic growth in the first year. It is also revealed that the most significant impact on economic growth comes from agriculture and industry, which the impact is decreasing over the coming years for the agriculture and increasing for the industry.

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