(Akademia Bialska im. Jana Pawła II, 2025-04-09)
Laissouf, Samir; Lahouel, kamel
Subject and purpose of work: This study aims to measure the impact of fuel subsidy on economic
growth in 2010-2020.
Materials and methods: The panel model was used in the study to calculate the variables of fuel
subsidies as a percentage of GDP and annual GDP growth per person for 11 energy producers and
exporters.
Results: the study showed that fuel subsidies had a significant adverse effect on economic growth,
with a 1% increase in fuel subsidies leading to a 0.19% drop in growth in the sample nations.
Conclusions: The findings are consistent with previous studies results and support the view that
the policy of fuel subsidies hurts economic growth channels. This study attempted to measure fuel
subsidies using the price GAP approach, which allows for estimating the levels of internal energy
prices and specific reference prices, such as international energy prices or the price of production
cost recovery.