Empirical Study of the Impact of Oil Revenues on the Algerian Gross Domestic Product Growth during the Period 1985-2022

Abstract

This study aims to determine the impact of oil revenues on GDP growth in Algeria during the period between 1985 and 2022, based on the error correction model (VECM), and the results showed that there is a common integration relationship between GDP. There is also a positive relationship between the two variables in the long term, and there is no relationship between them in the short term, and the results confirmed the delay in responding to the state's camouflage policy, and a set of recommendations were proposed, the most important of which is the need for economic diversification outside the hydrocarbon sector, which is the main determinant of economic activity in Algeria.