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Algeria; The Real Exchange Rate, Export Diversification, and Trade Protection


  • Piritta Sorsa


Given the tendency of the oil sector to appreciate the equilibrium real exchange rate (RER) in Algeria, trade liberalization with its depreciating impact on the RER is important for diversification of exports. This paper shows that reduction in trade protection would depreciate the RER in Algeria, which in turn would improve competitiveness of, and incentives to invest in, non-oil exports. The paper then discusses existing levels of protection in Algeria and directions for reform.

Suggested Citation

  • Piritta Sorsa, 1999. "Algeria; The Real Exchange Rate, Export Diversification, and Trade Protection," IMF Working Papers 99/49, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:99/49

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    References listed on IDEAS

    1. Charles I. Jones, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 495-525.
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    3. Rajan, Raghuram G. & Subramanian, Arvind, 2011. "Aid, Dutch disease, and manufacturing growth," Journal of Development Economics, Elsevier, vol. 94(1), pages 106-118, January.
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    5. Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2004. "On The Empirics of Foreign Aid and Growth," Economic Journal, Royal Economic Society, vol. 114(496), pages 191-216, June.
    6. Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, vol. 64(2), pages 547-570, April.
    7. Thierry Tressel & Alessandro Prati, 2006. "Aid Volatility and Dutch Disease; Is There a Role for Macroeconomic Policies?," IMF Working Papers 06/145, International Monetary Fund.
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    Cited by:

    1. Kivilcim Metin Özcan & Nur Sevim Kafali, 2007. "The Structure of the Turkish Banking Sector After the 2000-2001 Crisis: An Empirical Investigation," Working Papers 709, Economic Research Forum, revised 01 Jan 2007.


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