Oil Prices and the Algerian Exchange Rate: Is there any Difference with Hidden Co-Integration?

Abstract Research background: The aim of this paper is to examine the long run relationship among oil prices and Algerian Dinar exchange rate over period January 1995–February 2020 in Algeria as one most important oil-exporting countries OPEC members. Purpose: This study investigated co-integration between by testing long-run two variables their positive negative shocks. methodology: applied both traditional analysis using Engle-Granger, Phillips-Ouliaris Johansen-Juselius tests hidden presented Granger Yoon (2002). Results: results revealed that there no evidence a co-movement linkage neither with original series nor cumulative components whatever dependent variable. Novelty: fills missing link especially absence case developing countries. To deal shocks according Apergis Miller (2007) Narayan Gupta (2015) studies where when they suggested distinguishing price because asymmetric effect on macroeconomic variables.