Study of the reality of economic diversification in Algeria for the period 2000-2022, using the Herfindahl-Hirschman index
Keywords:
Economic diversification, the Herfindahl-Hirschman index, gross domestic product, Algerian economy, Economic sectorsAbstract
This study aims to shed light on the path of economic diversification during the period 2000-2022, based on the Herfindahl-Hirschman coefficient, by measuring the extent of na-tional economic diversification of macroeconomic indicators that reflect economic perfor-mance, namely "gross domestic product, export and import structure, public budgets reve-nues, and gross fixed capital formation." The study concluded that Algeria still relies heavily on oil revenues and that the embodied diversification policy has not yielded the desired re-sult despite the efforts made by Algeria to diversify its economy. It is necessary to develop a comprehensive national program to stimulate economic sectors. The agricultural sector is proposed as a potential avenue for diversifying the Algerian economy. Utilizing the implica-tions of the research include specific recommendations, notably that one sector should not be maintained by international innovation and technology.
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