A study of the impact of the commodity support policy on the general budget in Libya during the period (1990-2015)

Abstract

This study targets the development of government support, its percentage of the state's general budget during the study period and the impact of the commodity subsidy policy on the state's general budget, as the Libyan state spends large amounts annually on the subsidy budget, and the value of spending amounted to more than 57 billion dinars from the general budget during the study period, and the study found that the two variables of the studied series include the general time trend, and tend to stability, it was found that the two variables of the studied time series stabilized after taking the first difference, so the two variables were static and integrated of the first order, and it was found that the estimated model suffers from the problem of self-correlation of the remainders, and the problem of heterogeneity of the variation of the remainders, and the data do not follow the normal distribution, and therefore the model is not valid for study and prediction, and this is confirmed by the results of the estimated model through the absence of an effect relationship between the two variables of the study in the long term.