The Effectiveness of Economic Policies in Algeria in Light of Financial Globalization - An Analytical Study Using FP Methodology during the period (2000 – 2022)

Abstract

The aim of this study is to analyze the correlations between the economic policies and financial globalization and to evaluate the mix of economic policies in Algeria, based on the financialprogrammingapproach.In light of financial globalization, short-term capital flows become volatile, the case that contradicts the developmental policies since these policies do best only if they are long termed.

The results show thatanalysis of performance of economic policies in Algeria demonstrates the effect of the external shock related to drop in oil prices on national economy since the economic policies rely on hydrocarbon profits and therefore become vulnerable to changes in revenues and resources. So, the ideal mix of policies in Algeria is that one which allows the transfer of oil profits to alternative productiveassetscontributing in creating sustainable dynamics for the economy lasting after oil depletion. The study concluded that the economic policies seem to be directed to achieving sustainable economic stability rather than trying to establish a model for long term economic development that ensures a structural shift for the real production sectors.