The Impact of Export Volatility on Economic Growth in Algeria during 1992-2016: An Econometric Study
DOI:
https://doi.org/10.35516/jjes.v11i2.1258Keywords:
Export Volatility, Economic Growth, GDP, AlgeriaAbstract
Objectives: The issue of export volatility in the economies of less developed countries (LDCs) is a significant topic of debate in economic literature. This paper aims to investigate the potential effect of export volatility on economic performance in Algeria.
Methods: The study utilizes an econometric model to estimate the impact of export volatility on economic growth in Algeria for the period 1992-2016. Additionally, another regression model is used to analyze the effects of fluctuations in export prices and quantities on economic growth in Algeria.
Results: The findings show that there is no significant relationship between the export instability index and real GDP.
Conclusion: The study concludes that fluctuations in the prices and quantities of exports do not influence Algeria’s real GDP. Policymakers should reduce the dependency of the export sector on oil products and improve industrial performance in Algeria. Implementing price stabilization schemes and allocating more oil precautionary funds are also needed to mitigate any possible damaging effects of export volatility on Algeria’s economy in the future.
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