The aim of this study is to investigate the impact of Oil Prices distortion on Algerian Macroeconomics during the period (1980 to 2011). Using a Vector Error Correction Model (VECM); the impact of oil price fluctuation on five macroeconomic variables was examined. The results show that Oil Prices have no important Impact on the most variables during the short term with the exception that they have a positive effect on inflation and negative effect on real effective exchange rate. The result of Variance Decomposition analysis VD is consistent with the Impulse Response Function IRF in that there is a Positive Impact in Long-term of Oil Prices on The RGDP and INF. On the other hand; there is a Negative Impact on REER and UNE; with no effect at all on M2.Finally; The Study Recommends the importance of adopting a policy that allows reducing the dependence on the Oil Sector through diversification of income sources which; in turn; helps to raise real GDP; absorb Unemployment in The Local Economy; and reduce Inflationary pressures.
The aim of this study is to investigate relationship between the governanceindicators, and fiscal policy in place and the manner which oil revenuesmanaged in Algeria. The present study using descriptive and analyticalapproach .Algeria has suffered since its independence from pro-cyclical fiscal policy,resulting from the fluctuation of revenues, where the decision-makers didunable to achieve economic diversification in spite of the accumulation ofconsiderable financial surpluses during periods of booming oil market, andthe disposal of the dependency for the oil sector, which refers to not optimallyexploit the financial surpluses during the boom .Over time, oil revenues in Algeria have become the core and basis of politicsin general, and the cornerstone of economic policies in particular. Usuallyhigh rents in developing countries accompanied with the bad governanceindicators. The result shows that the problem in Algeria is the non-applicationof standards of governance (activating of the control and regulatory role ofgovernment, elimination of corruption, provide a democratic environment thatallows transparency and accountability) in the management of oil revenues,which led to inefficiency exploitation of these financial surpluses, and theemergence of some negative phenomena such as: the spread of corruption andthe decline of good governance indicators.
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