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Labor Productivity and Economic Growth in a Hydrocarbon-Dependent Economy: The Algerian Case, 1984–2015

  • Serge ReyEmail author
  • Sofiane Hazem
Original Article
  • 2 Downloads

Abstract

This paper addresses the empirical question of whether productivity can help explain the economic growth dynamics in Algeria over the period from 1984 to 2015. The first aim of this article is to measure the productivity for both the economy as a whole and for different sectors. Then, original estimates of the capital stock are made using the permanent inventory method, which enables the evolutions of the total factor productivity to be inferred. On the basis of these estimates, it is shown that, while the Algerian economy as a whole performed fairly well in terms of economic growth, this was more the result of an increase in production factors, i.e., labor force, than of labor productivity growth, which was very limited. This partly reflects the weak performance of the hydrocarbons sector, which has experienced a decline in labor productivity since the early 2000s, while other sectors such as agriculture have experienced strong productivity gains.

Keywords

Growth rate Algeria Hydrocarbons Labor productivity TFP 

Résumé

Cet article aborde la question empirique de savoir si la productivité peut aider à expliquer la dynamique de la croissance économique en Algérie sur la période 1984-2015. Le premier objectif de cet article est de mesurer la productivité à la fois pour l’économie dans son ensemble et pour différents secteurs. Ensuite, des estimations initiales du stock de capital sont effectuées à l’aide de la méthode de l’inventaire permanent, ce qui a permis de déduire les évolutions de la productivité totale des facteurs. Sur la base de ces estimations, il est montré que si l’économie algérienne dans son ensemble a enregistré une assez bonne performance en termes de croissance économique, cette performance résulte davantage d’une augmentation des facteurs de production, à savoir la main-d’œuvre, que de la croissance de la productivité du travail, qui était, elle, très limitée. Cela reflète en partie la faible performance du secteur des hydrocarbures, qui a connu une baisse de la productivité du travail depuis le début des années 2000, tandis que d’autres secteurs tels que l’agriculture ont enregistré de forts gains de productivité.

JEL Classification

D24 O14 

Notes

Acknowledgements

The authors would like to thank two anonymous referees for helpful and constructive comments. Any remaining errors are the sole responsibility of the authors.

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Copyright information

© European Association of Development Research and Training Institutes (EADI) 2019

Authors and Affiliations

  1. 1.CATT, University of Pau et Pays de l’Adour, E2S UPPAPauFrance
  2. 2.Social Sciences and Humanities CollegePau CedexFrance
  3. 3.Banque Maghrébine d’Investissement et de Commerce ExtérieurLes Berges Du Lac II, TunisTunisia
  4. 4.Economic Studies and Cooperation DepartmentLes Berges Du Lac II, TunisTunisia

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