Economic Determinants of Export Diversification in Algeria: An Empirical Analysis through Quantile Regression

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Chafik Bouberrima
https://orcid.org/0009-0000-8692-7357
Yassine Mostefai
https://orcid.org/0009-0006-0296-303X

Abstract

This study aims to identify the key economic determinants of export diversification in Algeria, a rentier state, over the period 1995–2022. Using annual data from various official sources, a quantile regression model is employed to assess the heterogeneous effects of selected variables across different levels of export diversification. The results show that foreign direct investment does not support export diversification, while oil rents and trade openness are factors that hinder the process. Conversely, domestic investment and manufacturing exports contribute positively to a more diversified export structure. The study contributes to the literature by offering new insights into how structural economic factors shape diversification patterns in resource-rich countries, emphasizing the role of targeted investment and industrial development policies in reducing dependence on natural resources.


 

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