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Algeria and the natural resource curse: oil abundance and economic growth

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  • Sidi Mohammed Chekouri
  • Abderrahim Chibi
  • Mohamed Benbouziane

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.

Suggested Citation

  • Sidi Mohammed Chekouri & Abderrahim Chibi & Mohamed Benbouziane, 2017. "Algeria and the natural resource curse: oil abundance and economic growth," Middle East Development Journal, Taylor & Francis Journals, vol. 9(2), pages 233-255, July.
    • Handle: RePEc:taf:rmdjxx:v:9:y:2017:i:2:p:233-255
    DOI: 10.1080/17938120.2017.1366772
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    1. Robert Gross & Jan Streeck & Nelo Magalhães & Fridolin Krausmann & Helmut Haberl & Dominik Wiedenhofer, 2022. "How the European recovery program (ERP) drove France's petroleum dependency, 1948–1975," Post-Print hal-03537310, HAL.
    2. Zhian Zhiow Augustinne Wong & Ramez Abubakr Badeeb & Abey P. Philip, 2023. "Financial Inclusion, Poverty, and Income Inequality in ASEAN Countries: Does Financial Innovation Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 471-503, September.
    3. Chau, Ka Yin & Moslehpour, Massoud & Tu, Yu-Te & Tai, Nguyen Tan & Tien, Nguyen Hoang & Huy, Pham Quang, 2022. "Exploring the impact of green energy and consumption on the sustainability of natural resources: Empirical evidence from G7 countries," Renewable Energy, Elsevier, vol. 196(C), pages 1241-1249.
    4. Aladejare, Samson Adeniyi, 2023. "Economic prosperity, asymmetric natural resource income, and ecological demands in resource-reliant economies," Resources Policy, Elsevier, vol. 82(C).
    5. Destek, Mehmet Akif & Hossain, Mohammad Razib & Manga, Müge & Destek, Gamze, 2024. "Can digital government reduce the resource dependency? Evidence from method of moments quantile technique," Resources Policy, Elsevier, vol. 99(C).
    6. Ekananda, Mahjus, 2022. "Role of macroeconomic determinants on the natural resource commodity prices: Indonesia futures volatility," Resources Policy, Elsevier, vol. 78(C).
    7. Salaheddine SARI-HASSOUN & Abderrahim CHIBI & Sidi Mohamed CHEKOURI, 2024. "Institutional quality and sustainability: empirical study in 11 MENA countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(641), W), pages 129-152, Winter.
    8. Erdoğan, Seyfettin & Yıldırım, Durmuş Çağrı & Gedikli, Ayfer, 2020. "Natural resource abundance, financial development and economic growth: An investigation on Next-11 countries," Resources Policy, Elsevier, vol. 65(C).
    9. Mohammad Imdadul HAQUE & Bashir Umar FARUK & Mohammad Rumzi TAUSIF, 2022. "A Revisit To The Resource Curse Dilemma In The Mena Region, For 2008-2014," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 22(1), pages 81-104.
    10. Chen, Yufeng & Msofe, Zulkifr Abdallah & Wang, Chuwen & Chen, Minghui, 2025. "Oil price uncertainty, exchange rate volatility, and African stock markets: A nonparametric quantile-on-quantile analysis," International Review of Financial Analysis, Elsevier, vol. 105(C).
    11. Dahmani Mohamed Driouche & Attouchi Manel & Chenini Moussa & Benbouziane Mohamed, 2020. "Asymmetric Responses of Oil Price Shocks on Economic Growth in Algeria: An Empirical Analysis through NARDL Approach," Energy Economics Letters, Asian Economic and Social Society, vol. 7(2), pages 74-93, December.
    12. Carlos Bianchi & Fernando Isabella & Anaclara Martinis & Santiago Picasso, 2023. "Varieties of middle-income trap: heterogeneous trajectories and common determinants," Documentos de Trabajo (working papers) 23-16, Instituto de Economía - IECON.
    13. Alex O. Acheampong & Janet Dzator & Matthew Abunyewah & Michael Odei Erdiaw-Kwasie & Eric Evans Osei Opoku, 2023. "Sub-Saharan Africa’s Tragedy: Resource Curse, Democracy and Income Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 471-509, August.
    14. Bianchi, Carlos & Isabella, Fernando & Martinis, Anaclara & Picasso, Santiago, 2024. "Varieties of middle-income trap: Heterogeneous trajectories and common determinants," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 320-336.
    15. Luo, Cheng & Li, Yonggang, 2024. "Asymmetric influence of fintech, oil prices, and precious metals on green growth of emerging seven countries," Resources Policy, Elsevier, vol. 92(C).
    16. Chen, Yufeng & Khurshid, Adnan & Rauf, Abdur & Yang, Hanyao & Calin, Adrian Cantemir, 2023. "Natural resource endowment and human development: Contemporary role of governance," Resources Policy, Elsevier, vol. 81(C).
    17. Ozcan, Burcu & Temiz, Mehmet & Gültekin Tarla, Esma, 2023. "The resource curse phenomenon in the case of precious metals: A panel evidence from top 19 exporting countries," Resources Policy, Elsevier, vol. 81(C).

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