The Effect of Dutch Disease on Trade Openness and Foreign Direct Investment in Algeria

Authors

  • Soufiane BOUSSALEM University of Oum El Bouaghi
  • Azzedine BENTERKI University of Constantine 2

Keywords:

Dutch Disease, Resource Curse, Rentier State, Trade Openness, Foreign Direct Investment

Abstract

This study aims to explain the poor performance of trade openness and foreign direct investment recorded in Algeria the last few years. The period of the study extends from 2004 to 2013. Using a time series data type, a classic linear regression model has been adopted in order to test hypotheses and explain the relationship between natural resource dependence and the performance of trade openness and foreign direct investment. SPSS software for windows version 19 has been used for statistical analysis which revealed several findings, essentially that there is a negative relationship between natural resource dependence and trade openness and foreign direct investment performances, which means that an increase of resource dependence results in a decrease in both trade openness and foreign direct investment.

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Author Biographies

Soufiane BOUSSALEM, University of Oum El Bouaghi

Faculty of Economic, Management and Commercial Sciences

Azzedine BENTERKI, University of Constantine 2

Faculty of Economic, Management and Commercial Sciences

References

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Idem.

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E.g. Jefrey D. Sachs and Andrew M. Warner, The Curse of Natural Resources, Harvard University, European Economic Review 45, 2001, pp 827-338.

- Jefrey D. Sachs and Andrew M. Warner, Natural Resource Abundance and Economic Growth, Harvard University, November 1997.

- Michael Herb, No Representation, Without Taxation? Development and Democracy, University of New York, Comparative Politics Vol. 37, No. 3, April 2005, pp297-316.

E.g. Jonathan Isham & al, The Varieties of Resource Experience: How Natural Resource Export Structures Affect the Political Economy of Economic Growth, Middlebury College Economics Discussions Paper No. 03-08, April 2003.

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Thorvaldur Gylfason, loc cit.

International Monetary Fund, Algeria Country Report No. 14/341, December 2014.

World Bank Database, http://data.worldbank.org/indicator/NY.GDP.PETR.RT.ZS, viewed: 10/08/2015.

Trade openness index is measured by the share of import and export of gross domestic product.

the World Bank Database.

the World Bank Database.

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Published

2015-06-01

How to Cite

BOUSSALEM, S., & BENTERKI, A. (2015). The Effect of Dutch Disease on Trade Openness and Foreign Direct Investment in Algeria. Journal of Human Sciences , 26(2), 57–65. Retrieved from https://revue.umc.edu.dz/h/article/view/2114

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