Revue Finance & marchés
Volume 11, Numéro 2, Pages 50-64
2024-09-21

Economic Diversification In Algeria: Reality, Challenges And Prospects

Authors : Senouci Bereksi Imane . Benallal Belkacem . Berrached Amina .

Abstract

Economic diversification is a strategic choice to achieve sustainable development in oil economies. Algeria is among the countries that have aimed to adopt several plans to activate this diversification in various economic sectors to reduce the oil dependence sector and optimize its agricultural and industrial abilities.This study aims to present the reality of the economic diversification strategy in Algeria, over the period 2008-2020, using Herfindahl-Hirschman index to measure the magnitude of diversification of the national economy by considering macroeconomic indicators that reflect economic performance. The study shows that, despite the efforts made by the government to diversify the national economy, it still suffers from the dominance of its hydrocarbon sector, in this regard; the urgent need to adopt an integrated and more effective economic diversification.

Keywords

Economic diversification ; Herfindahl-Hirschman index ; national economy ; fuel sector ; economic performance