The Analysis of Poverty Dynamics in Algeria: A Multidimensional Approach

The study of poverty is often oversimplified and, its manifestation, perceived as dichotomous. This conventional analysis is merely based upon the splitting of the population into two groups: poor and non-poor according to some hypothetical poverty line. This is called the one-dimensional approach of poverty. In addition there is no consensus regarding the poverty threshold, as Cerioli and Zani (1990) point out that a strict division of the population into poor and non-poor is unrealistic. To avoid this shortcoming, recent studies are increasingly using multidimensional analysis which will constitutes the first objective of this study that is concerned primarily with the application of this new methodology to the west part of Algeria with the emphasizing of two types of approaches: The Logit-Probit and the fuzzy set. The second objective is to comprehend the phenomenon of poverty within a systemic and dynamic approach. Our results show that the fuzzy set approach is more pertinent than the others in capturing different graded attributes of poverty. Therefore, the study reveals that income is not the sole indicator of well-being and should be supplemented by other attributes, mainly, housing, level of comfort and social capital. Moreover, the main finding highlights that rural areas are the most hit by deprivation and poverty. This analysis serves as a basis for a better targeting as far as policy options for poverty reduction are concerned

The Relationship Between Oil Price and the Algerian Exchange Rate

The goal of this study is to investigate the relationship between oil price and the nominal US Dollar/Algerian Dinar exchange rate through an empirical analysis using a VAR Model (Vector Autoregressive Model) upon monthly data for the period 2003-2013. Results show that a cointegration relationship is not detected between the oil and exchange rate in Algeria. However, the estimation of a VAR model indicates that a 1% increase in oil price would tend to depreciate Algerian Dinar against US Dollar by nearly 0.35%. This negative impact emphasizes how the Algerian dinar is a non-oil currency and explains how the foreign exchange receipts from hydrocarbon exports help swell Algerian public spending that would cater for public budget deficit curtailment

Decision-making factors for purchasing a new car in Algeria: A Descriptive Analysis

The purpose of this article is to analyze in a descriptive way the determining factors in the decision to buy and choose a brand new car in Algeria. The literature in this field is constantly introducing new factors capable of changing decision-making according to internal and external factors. The results show that the decision was based on several socioeconomic and environmental factors

Decision-making factors for purchasing a new car in Algeria: A Descriptive Analysis

The purpose of this article is to analyze in a descriptive way the determining factors in the decision to buy and choose a brand new car in Algeria. The literature in this field is constantly introducing new factors capable of changing decision-making according to internal and external factors. The results show that the decision was based on several socioeconomic and environmental factors

The Impact of Oil Prices on Macroeconomic Fundamentals, Monetary Policy and Stock Market for eight Middle East and North African Countries

The objective of this study is to investigate the impact of oil prices on macroeconomic fundamentals as well as monetary policy and stock market for eight oil-exporting and non-oil exports countries in the Middle East and North African region,namely Algeria,Egypt,Iran,Kuwait,Morocco, Saudi Arabia,Tunisia and Turkey. Using quarterly data for the period 1994Q4-2015Q2,with a Panel-ARDL, we may conclude that there are short run dynamic cross section relationships between,first,oil prices and macroeconomic variables such as growth rate and consumer price index, second, oil prices and money market rate and, third, market capitalization and oil prices. In the long run, dependent variables such as consumer price index and market stock exhibit a cointegration relationship with oil prices. However, no cointegration relationships could be established between oil price variations, monetary policy and growth rate. In this context, we apply a multivariate VAR model to examine responses of all variables to oil price shocks. Results show a relatively high elastic response of economic growth in oil-exporting countries except for Kuwait and, conversely, in oil-importing economics, GDP response to oil prices appear reasonably stable, close to zero. Similarly, the same results can be captured for each oil-importing and exporting country as far as the negative sign exhibited by market response to oil price during the first period caused by financial crisis contagion. The next macroeconomic variable, CPI, shows a positive response to oil.In addition, oil prices appear to have a negligible response on money market rates in the Middle East and North Africa except for Turkey and Egypt

Poverty and Education in Algeria: the Impact of Non-School Factors using a Multinomial Econometric Approach

Using a multinomial logit measurement, we aim through this paper to quantify the relationship between poverty and education. A subjective measurement of poverty is used with non school factors in quantifying such relationship. For a better understanding of the linkage Poverty-Education, a Multinomial regression model is applied to a representative survey of 500 households in the region of Tlemcen. According to our results , variables such as: individual housing, household's head instruction's level ,expenditures on education , the gender (male), and the age are common variables whatever poverty status. As far as policy makers are concerned, education is seen as a vital player in economic and social development. Accordingly, the higher is the education level the more likely it contributes to household poverty alleviation. Our results are of great importance to Algerian policy makers as long as it shows some significant variables which should be taken in consideration in drawing policies

The Black Market Exchange Rate and Demand for Money in Algeria

The aim of this paper is to examine empirically the effects of black market exchange rate on the demand for money in Algeria where due to government restrictions and controls on foreign exchange, two exchange rates (official and black) coexist and operate simultaneously. The discrepancy between the two rates has intensified since the adoption of the (S.A.P) in 1994.Using quarterly data for the 1974-2005 and an ARDL approach combined with CUSUM and CUSUMSQ,our results provide further evidence in favor to the inclusion of black market exchange rate rather than official rate issue

Poverty and Education in Algeria: the Impact of Non-School Factors using a Multinomial Econometric Approach

Using a multinomial logit measurement, we aim through this paper to quantify the relationship between poverty and education. A subjective measurement of poverty is used with non school factors in quantifying such relationship. For a better understanding of the linkage Poverty-Education, a Multinomial regression model is applied to a representative survey of 500 households in the region of Tlemcen. According to our results , variables such as: individual housing, household's head instruction's level ,expenditures on education , the gender (male), and the age are common variables whatever poverty status. As far as policy makers are concerned, education is seen as a vital player in economic and social development. Accordingly, the higher is the education level the more likely it contributes to household poverty alleviation. Our results are of great importance to Algerian policy makers as long as it shows some significant variables which should be taken in consideration in drawing policies