Analytical Limitations of the Forsyth and Kay Model as Applied to Algeria

Abstract

This paper discusses the pre- and post-oil economy, and the emergency of the oil and gas sector, using a modified Forsyth and Kay model. The point raised in this paper is to show the analytical limitations of this model as applied to Algeria, rather than going into seeing whether the development of the oil and gas sector in Algeria would result in capital becoming available for manufacturing industry, so allowing ‘industrialization’, or whether it would cause ‘de-agriculturalization’ as has been suggested for the case of Nigeria.