What explains the lack of export diversification in Algeria ?

الملخص EN

This paper aims to understand why Algeria- as an oil exporter country- has suffered such lagging of export diversification, by investigating whether the traditional explanations for a lack of export diversification in Oil-exporting countries hold for Algeria? The findings show that: Dutch disease, real exchange rate volatility, and rent seeking do not seem to hold for Algeria, while the constraints on private sector development is a highly appropriate explanation.

However; many critical binding's constraints to private sector development and export diversification still exist in the country.

Consequently, policymakers should prioritize their intervention on the removing of such constraints in order to improve the country's business climate.