The Impact of the Global Financial Crisis on Algerian Economy

2016

Most of the empirical evidence has shown that the majority of oil dependent countries have the low level of financial development; thus, they are much more volatile and exposed to the oil shocks and the so named “oil curse”. This paper aims to investigate the impact of the Algerian financial system—as one of major oil economies—on the economic growth and escaping the oil curse. Over the past two decades, Algeria has courageously attempted to modernize its financial system despite social strife and challenges posed by the large hydrocarbon sector and an inefficient public sector. In fact, various reforms have been undertaken since the early 1990s to the transition from planned to an open market economy. So, the first section provides the research background based on a theoretical model and a set of empirical studies about financial development and the oil curse. An analytical framework of the Algerian financial system evolution is provided in the second section, focusing on the two p...

2009

The international financial crisis has hit the Middle East and North Africa (MENA), like other developing regions, unexpectedly, during a long phase of above-average growth. In contrast to other parts of the world, however, most MENA developing countries will able to get off lightly if the crisis does not last for too long. In Turkey and Israel, the region's more industrialized countries, different initial conditions apply and the situation is not comparable to the Arab MENA countries. This is why both these countries are not included in the analysis below.

2016

Algeria has initiated an extensive program of public investment during the last decade. But it seems that the results of economic activity (GDP, diversification of the economy) have not been commensurate with the efforts. Through estimating a SVAR model we have shown that the impact of the shocks of the fiscal policy (budget revenues and expenditures) have a small effect on the variables of the study. However, the results of the study showed a positive effect on economic growth, but in the short term. It is important to override this expansionary fiscal policy based on investment in infrastructure for a structural policy based on industry and diversification of the economy.

Mediterr Polit, 2010

Much has been written on the impact of the global financial crisis on Europe, Asia and the Americas but only little on the Arab states. This article makes an early attempt to take stock of recent developments in the Arab world and offers a systematic approach to disentangle the various inter-linkages and effects of the crisis on the region. It

International journal of economic behavior and organization, 2021

Industrial development has gained a position of strength in the successive debates on the realization of economic development projects, accentuated by exceptional progress of new technologies, such as innovation, creativity and entrepreneurship, with a tremendous growth of more innovative companies in terms of production, service delivery or simply concentrated on resell. One can, of course, invoke innumerable theoretical and literary arguments about the contribution of the industrial sector in the economic growth, starting from the works and approaches of the classics and neo-classics, particularly the most contemporary ones, like Rosenstein-Rodan, Myrdal, Nurkse, Hirschman, and many others, as long as the debate focused on the means and instruments to benefit States, provided that it is well managed. Algeria has been well engaged in the implementation of an industrialization strategy, through some programs and projects of revival of the industrial apparatus, in particular the model, globally recognized," industrializing industries" in order to find alternatives for import substitution and the establishment of an industrial platform capable of raising the level of economic development upwards, and above. Indeed, industrial policy has become hostage of energy and hydrocarbon policy, as long as all investments and efforts have been made and directed in the promotion of the extractive industries, since the oil markets have created opportunities an for financing economic projects, leaving behind other components of the industrial sector, especially manufacturing industries. Taking this into account and in another effort to break away from the grip of the oil sector, the Algerian State turned to a new industrial policy and strategy, which will be more interested in the promotion of manufacturing industries, but this becomes relatively complicated and delicate, in view of the deterioration of public revenues and the possibility of drying up of revenues, as a consequence of the fall in oil prices, leaving, thus, puzzled economic decision-makers on the appropriate means of financing and accompanying this step. We will try, through this paper, to examine the planned and tracked modalities for such a large project, given the economic and financial context, which calls for greater prudence and the rationalization of public expenditures and their targeting.

International Journal of Business and Management, 2012

This paper will examine the impact of the global financial crisis on the Arab counties during the period (2008-2009). The paper has shown that increasing interconnected world economic and financial matters means more effects on countries with high exposure to the rest of the world. The study finds that the various economies of the Arab countries were impacted by the crisis. The impacts varied between the Arab countries according to the nature of their economies and the degree of openness and the association with the global economy. Some governments in the region have moved to reassure depositors that their money is safe in addition to the overall economic reforms carried out. The study classified Arab countries into three groups depending on their economies structure. The effects of the crisis spread to the Arab economies through several local and external factors. The paper found out that the direct impact of the crisis was less dramatic in the financial sectors of some Arab countries due to the low level of interlink ages with the international system. One important lesson from the crisis is to prevent financial contagion from crippling their domestic banking and non-banking financial sectors in addition to the needed work to restore macroeconomic stability and sustainable growth and to work together to face the current and future economic and financial crisis.

International Journal of Business and Management; Vol. 7, No. 16; 2012, 2012

The paper discusses the impact of global financial crisis on the Jordanian economy in two periods; the first period extended from the beginning of the global crisis in autumn of 2008 to December 2008, and the second period started from December 2008 till the end of 2011. The results of this paper indicate that the impact of the global crisis is being driven by the country's high dependence on foods and oil prices which led to increase the prices of oil and commodity. We also found that the banking and tourism sectors were not affected by the crisis. The evidence is presented in a series of charts which are backed up by statistical analysis.

This article describes and analyzes the evolution of the main economic and monetary aggregates of the Tunisian economy after the financial crisis and the political instability of January 2011. In addition, it interested to present the different risks suffered by the bank system during and after these two crises and to identify whether the monetary policy is optimal to mitigate these weaknesses. We suggest first to study the evolution of economic performance during and after these crises. Second, we analyze the impact of the economic recession on the Tunisian banks' overall strength and liquidity. Ultimately, we focus on the effectiveness of the monetary policy during these crises. The results suggest that Tunisian banks have been very touched by the revolution's disturbance particularly, at the level of risk-taking and liquidity mismatch. The analysis of monetary policy, showing that it has evolved from an accommodating policy, going from a neutral monetary policy to a restrictive one, by using the key interest rate as well as reserve rates as monetary policy instruments.

The paper discusses the impact of global financial crisis on the Jordanian economy in two periods; the first period extended from the beginning of the global crisis in autumn of 2008 to December 2008, and the second period started from December 2008 till the end of 2011. The results of this paper indicate that the impact of the global crisis is being driven by the country's high dependence on foods and oil prices which led to increase the prices of oil and commodity. We also found that the banking and tourism sectors were not affected by the crisis. The evidence is presented in a series of charts which are backed up by statistical analysis.

International Journal of Business and Management, 2012

The paper discusses the impact of global financial crisis on the Jordanian economy in two periods; the first period extended from the beginning of the global crisis in autumn of 2008 to December 2008, and the second period started from December 2008 till the end of 2011. The results of this paper indicate that the impact of the global crisis is being driven by the country's high dependence on foods and oil prices which led to increase the prices of oil and commodity. We also found that the banking and tourism sectors were not affected by the crisis. The evidence is presented in a series of charts which are backed up by statistical analysis.

2010

The aim of this paper is to determine banking deregulation level as a function of the variations of the internal and external fundamentals of the economy. Variations of these variables constitute an indicator of the internal and external vulnerability of the Tunisian economy. At a particular level, this vulnerability may indicate the start or the reinforcement of a financial crisis.

The popular upsurge experienced by some countries in the MENA region and the political turmoil that follows were partly caused by the weakness of the political institutions. Since financial sector development is crucial for every growth and development effort, the financial sector reforms were in the core of every political program for the last legislative elections that took place in Tunisia in October 2014. The aim of the paper proposed is to depict the financial systems status for the North African region countries as they present comparable features and characteristics. Emphasis will be placed on the Tunisian case since it is the only country experiencing a democratic transition among the Arab Spring countries. The role of the Islamic finance in the attempt to reform the financial system in Tunisia will also be highlighted. The democratic elections organised for the first time in the history of Tunisia in October 2011 brought to power a tripartite coalition with the intention to fight against corruption, reduce economic and social inequalities, introduce reforms for the financial sector by giving to the Islamic finance a central role.

The Journal of North African Studies, 2004

HAL (Le Centre pour la Communication Scientifique Directe), 2021

An Economic and Monetary History Approach* Fatiha Talahite * Published In Ben Gadha, M. et al. eds., Economic and monetary sovereignty in 21st century Africa. Pluto Press, 2022, pp. 105-127. 1 "Algeria will be part of the Franc zone. It will have its own currency and its own foreign current assets. There will be freedom of transfer between France and Algeria under conditions compatible with the economic and social development of Algeria." (Evian Agreement, 1962). For a year and a half after independence, the 'Algerian Franc' was a local currency only valid within the boarders, pegged by a fixed exchange rate to the French Franc, which was its reference currency for external payments. Foreign exchange reserves were managed by the Franch Treasury. 2 Benissad M.E., 1972. Du satellisme à l'indépendance monétaire. Revue algérienne des sciences économiques, politiques et juridiques.