The Impact of Financial Development on the Growth of non-Hydrocarbon Sectors in light of Trade Openness
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Date
2023
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oum El Bouaghi
Abstract
This study examines the relationship between financial
development and the growth of non-hydrocarbon sectors
in the light of Algeria’s trade openness for the period
between 1990-2017. VAR’s model was used to study the
sensitivity of growth rates of non-hydrocarbon sectors
due to shock in the variables of financial development in
the presence of the variables of trade openness.
The results showed that the indicators of financial
development(FDI) do not have an Immediate effect on
the growth rates of non -oil sectors even after a period of
time estimated between two and four years, where this
impact becomes positive, Compared to the indicator of
loans to the private sector, which was relatively weak
contribution to the analysis of variance of growth rates of
non-oil sectors The Financial intermediate indicator is of
great importance in analyzing the variance of growth
rates of non-hydrocarbon sectors, In addition, the trade
openness indicator had a good contribution to the
analysis of variance for non-oil sector growth
Description
Keywords
Growth of non-Oil sectors; Financial Development ; Trade Openness; VAR models