—The aim of this paper is to econometrically
examine the impact of fluctuations of oil exports and its
expansion on Algerian economic growth. The model of “an
export as an engine of growth” is applied to total output as well
as sectoral outputs. The technique of a Koyck distributed lag
scheme was used and the main results can be illustrated as
following: The growth rates of all Algerian sectors were much
higher during the periods of rise in oil prices than during the
period of oil recession. The regression results suggest that the
coefficient of oil exports is highly significant in all periods
except in the recession period (1986-1998). There are spread
effects from oil exports to the rest of the economy during the
periods that enjoyed high oil prices (1973-1985 and 1999-2010).
When the component effects are excluded, the results of sectoral
output investigation indicate that there is no evidence of spread
effects of oil exports to the rest of the economy. The coefficient
of the dummy variables in the equations of trade sector and
manufacturing sector are statistically significant, which suggest
that the intercept of these sectors have risen during periods of
increase in export prices.
—Oil exports, sectoral output, economic growth,
A. F. Yahia, is with the Department of economics, Faculty of Economics
and Commerce, Almergib University, Al-Kumis, Libya (e-mail:
Cite: Abdusalam F. Yahia, "Sectoral Output Response to Fluctuations of Oil Exports in Algeria," International Journal of Trade, Economics and Finance vol.5, no.6, pp. 536-540, 2014.