A standard study on the impact of economic diversification on the economic growth rate in Algeria using the ARDL model for the period 1990-2021.

Abstract

The study aims to measure the impact of economic diversification on the economic growth pursued by economic policy, adopting several models of economic diversification from the Growth Poles model in 1968 to the Economic Diversification Perspectives 2030 model. This is particularly relevant as the Algerian economy is characterized by its rentier nature and seeks to reduce its dependence on oil resources. Through empirical analysis using the E-VIEWS software to measure the impact of economic diversification from 1990 to 2021 on economic growth, we found a negative short-term effect of diversification on economic growth. Economic growth in Algeria remains contingent on oil revenues, given the absence of productive sectors generating value-added, such as the manufacturing sector.