A Comparative impact of oil and petroleum exports on economic growth: A standard study of Algeria's economy

Abstract

This study seeks to compare the impact of oil and petroleum sales on Algeria's economic growth. This is using an economic model with annual data determined from 1990 to 2023, we have revealed significant insights. The model employs oil and petroleum exports as independent variables and economic growth as the dependent variable. Components constituting the model: The Vector error correction model data showed that the variables in the model were in long-term equilibrium. Additionally, the test results of Impulse Response Functions and analysis of variance decomposition substantiated the statistically significant influence of oil exports on economic growth. This confirms Algeria's inability to reduce dependence on oil. The economic importance of oil exports, which offer social security, is still significant.Although the Algerian Government had made significant efforts to provide facilities for those seeking to invest in productive sectors, it still needed funding, greater support, and permanent escort to shape Algeria's economic future.