The Asymmetric Impact of Oil Price Fluctuations on the Economic Diversification Index in Algeria during the Period (1996-2019)

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Ben Abderrahmane Abdessamed, Dahhou Mohammed, Akabli Abdelkader

Abstract

This study aimed to measure the asymmetric impact of fluctuations in oil prices on the economic diversification index in Algeria during the period (1996-2019), based on nonlinear time gap autoregression models (NARDL) where the index was adopted. As a dependent variable explained by both positive and negative shocks in oil prices.


The study found that there is a positive impact of positive values in oil prices on the economic diversification index in the short term corrupt, while the decline in oil prices leads to a decline in the economic diversification index in the short term with higher flexibility than that recorded as a result of high oil prices, while the economic diversification index responds only positively to the decline in oil prices in the long term, while the rise in oil prices has not had any impact on the economic diversification of Algeria in the term. Long

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