Interactive Impacts of Remittance Inflows on Economic Growth in Algeria: Is the N-shaped Hypothesis Valid?

This investigation explores theinfluence ofremittances oneconomic growth inAlgeria during theperiod 1970–2022 using theFourier autoregressive distributed lags (FARDL) model. This study provides new insights by suggesting anN-shaped association between remittances and economic growth. Thefindings reveal anonlinear relationship between remittances and growth inAlgeria. Initially, theimpact ofremittances onincome is positive, then becomes negative when they exceed athreshold of1.2% ofGDP, and later becomes positive again when remittances surpass asecond threshold estimated at1.894% ofGDP. These results highlight theimportance ofincreasing remittance inflows topromote development inAlgeria and urge decision-makers tocreate conditions that encourage theinflow ofthese funds through official channels