The impact of Dutch disease on the economies of oil-producing countries : Algerian case

Abstract

This study aims to clarify the impact of the Dutch disease on the economy of the rentier countries, by highlighting the negative effects of this phenomenon and the risks of the continued dependence of the rentier countries on the hydrocarbon sector to meet the economic and social goals. We choose Algeria as an applied sample for the study. In order to answer the problem of the study, a number of economic indicators were used, such as GDP and value added of each economic sector. We found a set of findings that the phenomenon of the Dutch disease negatively affected the growth of the Algerian economy, as evidenced by the ratio of the value added of the hydrocarbon sector in GDP, as well as the volume of its fiscal revenue. The most important proposed solutions to the Algerian authorities is to adopt a comprehensive economic strategy to motivate and developing the productive economic sectors, especially the industrial sector, including creating economic wealth outside the hydrocarbon sector and competing globally.