Measuring the Impact of Export Diversification on Economic Growth in Algeria During the Period 1995-2022

Abstract

This study aims to measure the impact of export diversification on economic growth in Algeria during the period (1995-2022), using the Auto Regressive Distributed Lag (ARDL) methodology to estimate the dynamic relationship between the independent variables represented by export diversification, trade openness, capital, labor, exchange rate, and economic growth in both the short and long terms. The study found a significant and meaningful short and long-term causal relationship between trade openness and economic growth, with the remaining variables in the study showing no significance. These results suggest the ineffectiveness of capital, labor, exchange rate, and export diversification as tools to stimulate economic growth.