A CGE analysis of the economic impact of oil price shocks on the Algerian economy

Abstract EN

The main objective of this study is to show the nature and extent of the impact of oil prices on the Algerian economy.

It also tries to find out what the economic position would be, should the oil prices be decrease or increase.

In this study, different types of external price shocks are also considered in order to test the response of the economy.

Model results indicate that export price shocks in petroleum sectors chow a fall in domestic output and consequently a fall in value added and total employment.

Domestic terms of trade of exports deteriorate and exports fall.

This also causes a fall in GDP, private consumption and total orption.

The government revenue declines and budget deficits worsen.