This study examined the relationship between oil price changes and inflation rate in Algeria from 1970 – 2014. The study method that able to capture for asymmetries in the relationship between oil price and inflation known as nonlinear autoregressive distributed lags (NARDL). The estimated model revealed the existence of nonlinear effect of oil price on inflation. Specifically, we found a significant relation between oil price increases and inflation rate, whereas, a significant relation between oil price reduction and the inflation was absent.
Topics in Middle Eastern and North African Economies
Middle East Economic Association and Loyola University Chicago
Lacheheb, Miloud and Sirag, Abdalla, "Oil price and inflation in Algeria: A nonlinear ARDL approach". Topics in Middle Eastern and North African Economies, electronic journal, 18, 2, Middle East Economic Association and Loyola University Chicago, 2016, http://www.luc.edu/orgs/meea/
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