Impact of export diversification on economic growth: the case of Algeria

Abstract EN

The aim of the present paper is to examine the relationship between the import structure and economic growth in the Algerian economy.

The study relies on yearly data covering the 1974-2020 period, as well as on an empirical approach based on the use of a linear regression.

The economic growth was measured using the balance of trade, Foreign Direct Investments and Gross Domestic Productvariables.

The results of the linear regression reveal the existence of a significant correlation between diversification and GDP.

For the other variables, no correlation proved significant.

Besides, the results suggest a need for an export diversification, including non hydrocarbon exports, and a structural transformation of the Algerian economy.