THE CONTRIBUTION OF SMALL AND MEDIUM ENTERPRISES TO VALUE ADDED IN ALGERIA: AN ECONOMETRIC STUDY

Abstract

In Algeria’s economic development, SMEs are crucial, they contribute to absorbing unemployment and generating jobs and help to increase added value and GDP. This study uses the cointegration approach by the Autoregressive Distributed Lags (ARDL) methodology to examine the extent to which public and private SMEs in Algeria contribute to developing added value. The study spans the years 2000 through 2022. According to the study, added value and public and private SMEs in Algeria have a sizable long-term link. Thus, the expansion of added value is positively correlated with the expansion of SMEs. The findings of this research reveal that to accelerate economic development, the Algerian government should concentrate on fostering the expansion of private SMEs. Giving SMEs access to funding, education, and other resources will accomplish this.