The impact of the informal economy and poverty on unemployment in Algeria: A dynamic ARDL simulation study
Keywords:
unemployment, informal economy, poverty, DynardlAbstract
This study aims to determine the impact of the informal economy and poverty on unemployment in Algeria during the period from 1991 to 2022, using the aggregate cointegration test and the ARDL model boundary test, as well as the Dynamic ARDL Simulation. The results of the study showed the existence of cointegration between the study variables. The long-term results showed a significant inverse relationship between the size of the informal economy and unemployment, while there is a significant positive relationship between unemployment rates and poverty. The short-term results showed a significant inverse relationship between the size of the informal economy and poverty with unemployment rates, while the shock results were consistent with the long- and short-term results.
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