Financial development and the oil curse: Evidence from Algeria

摘要: Most of the empirical evidence has shown that majority oil dependent countries have low level financial development; thus, they are much more volatile and exposed to the shocks so named “oil curse”. This paper aims to investigate impact the Algerian system—as one major economies—on economic growth and escaping curse. Over past two decades, Algeria courageously attempted to modernize its system despite social strife challenges posed by large hydrocarbon sector an inefficient public sector. In fact, various reforms have been undertaken since early 1990s transition from planned open market economy. So, first section provides research background based on a theoretical model a set studies about development An analytical framework of Algerian evolution is provided in second section, focusing the two phases: 1990-1999 2000-2011. Finally, using econometric regression model to test over period 1980-2014, the preliminary results show enhanced but it has not contributed reducing negative effect rents.