How far does the central bank influence its economies? The example of Algeria

Abstract

This study focused on Algeria and it looked at how education quality affected the knowledge economy. The theoretical anchor was the endogenous or new growth hypothesis. Secondary sources were used to get panel-structured data that spanned 48 Algerian provinces in 22 years (1999–2020). The equations were estimated using the fixed-random effect model and Hausman test, Also the Kao (Engle Ganger-based) cointegration test proved that the series did indeed have a long-run connection. The findings indicated that the knowledge economy was boosted by a rise in students’ Baccalaureate and Intermediate test success rates. This is due to the fact that a rise in exam success rates indicates that individuals at various educational levels are now receiving education of a higher caliber, and the economy depends on this caliber of education. The rise in students and professors is a sign that there are more knowledgeable people and specialized educators accessible to fuel the knowledge economy. As more educated citizens pass their exams and graduate from college, they are hired from the labor market into industries as significant production factors whose skills, values, and knowledge acquired through specialized training are expected to promote machine handling and coordination of other human and nonhuman production factors to fuel the knowledge economy. Teachers should be provided with ongoing professional development opportunities to help them provide instruction at all educational levels, according to a recommendation. This would improve their ability to educate and inspire students and help them do better on their intermediate and baccalaureate exams.