Algeria and the natural resource curse: oil abundance and economic growth. Issue 2 (3rd July 2017)

• Record Type: Journal Article
• Authors: Chekouri, Sidi Mohammed; Chibi, Abderrahim; Benbouziane, Mohamed
• Is Part Of: Middle East development journal. Volume 9:Issue 2(2017)
• Page Start: 233
• Page End: 255
• Publication Date: 2017-07-03
• Subjects: resource curse -- oil revenues -- oil revenues volatility -- economic growth -- cointegrated vector autoregression (VARX*) -- Algeria; Middle East -- Economic conditions -- 1979- -- Periodicals; Economic forecasting -- Middle East -- Periodicals; Africa -- Economic conditions -- 1960- -- Periodicals; Economic forecasting -- Africa -- Periodicals; Economic forecasting; Economic history; Africa; Middle East; Periodicals; 338.95605
• DOI: 10.1080/17938120.2017.1366772
• Languages: English
• ISSNs: 1793-8120

Abstract

Abstract : In this paper, we examine the interaction between oil exports' revenues and long-run economic growth in Algeria over the period 1979–2013. Advanced econometric procedures including the cointegration VARX (VAR with exogenous variables) model, over-identifying restrictions, bootstrapping, persistent profiles and Generalized Impulse Response Function are utilized in the empirical analysis. The results show a strong and positive association between oil revenue and long-run economic growth, but negative linkages between the volatility of oil revenues and growth in Algeria. Our impulse response analysis also provides evidence that a positive shock in oil revenues increases the level of real output, and appreciates the real exchange rate.