An Empirical Investigation into the Relationship Between Education Policy and Economic Growth in Algeria (1990-2020)

Abstract

This study investigates the impact of education expenditure on economic growth in Algeria over the period 1990–2020, given its critical role in achieving sustainable development. Using the Ordinary Least Squares (OLS) model, the analysis reveals the existence of a short-term relationship and a long-term equilibrium between the variables. However, the effect of education spending on economic growth appears to be weak and direct. These findings highlight the necessity for the Algerian government to adopt a well-defined strategy for the education sector—one that aligns with current and future labor market needs amid the transition toward knowledge-based and digital economies. Furthermore, the study emphasizes the importance of rationalizing education expenditures by focusing on qualitative rather than merely quantitative improvements.