The impact of real oil revenues fluctuations on economic growth in Algeria: evidence from 1960-2015 data

Imène Laourari and Farid Gasmi

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the impact of real oil revenues fluctuations on economic growth in Algeria using data from 1960 to 2015. To shed some new light on this question, we use a measure of real oil revenues recently developed by Gasmi and Laourari (2015) that is endogenous to Algeria’s international trade structure. We apply the Johansen multivariate cointegration approach to analyze the short-run and the long-run dynamic relationship between real oil revenues and economic growth proxied by two variables, namely, real GDP and industrial sector growth. The cointegration analysis suggests that a long-run relationship exists between real oil revenues, real GDP, and industrial growth in Algeria. The impulse response function and the variance decomposition analysis suggest that the impact of unexpected shifts in real oil revenues on the country's economic and industrial growth is negative.

Keywords: Algeria; Real oil revenues fluctuations; Economic growth; Industrial sector; Time series. (search for similar items in EconPapers)
JEL-codes: C32 O13 O14 Q32 (search for similar items in EconPapers)
Date: 2016-10-10
New Economics Papers: this item is included in nep-ara, nep-ene and nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:77590

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