Imports between economic openness and household living standards in Algeria

• Lassoued Mohammed

  University of El-Oued

• Tlili Bachir

  University of El-Oued

• Lassoued Abdelhalim

  University of El-Oued

• Tliba Touati Nacima

  University of El-Oued

This paper investigated the relationship between household income and the import structure in Algeria and the extent to which different import categories (FOOD, AGRI, CRAF, FUEL, ICT, and MINE) influence household income, for the period 1980–2025. We attempted to advance the field by examining both the long-run and short-run effects of these import categories using the ARDL bounds testing approach and vector error correction model (VECM), and the stability of the functions was also tested by CUSUM and CUSUMSQ. We found that while a long-run relationship exists between household income and the detailed import structure, the effects differ across import categories. In the context of short-run dynamics, only some import categories, such as AGRI and CRAF, significantly affect household income, whereas others show weak or insignificant effects. Finally, the CUSUM test confirms the long-run relationships between household income and the import structure and also shows the stability of the coefficients.

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