In the context of globalization, openness to international markets became a necessary element to boost the economies of nations. Thus, this paper tries to show the role of trade openness in diversifying the economies and resource rich countries in particular. The paper provides analytical and empirical explanation for the role of openness in diversifying the Algerian economy as one of the most important oil exporting countries. Using the HerfindahlHirschman index of export concentration, we found that the trade openness measured by this index increased the concentration of Algerian exports over the period of 1985-2015. Meanwhile, the foreign direct investment has not played any role in diversifying the national economy. The research uses the two stages least squares to show this relationship
Topics in Middle Eastern and North African Economies
Middle East Economic Association and Loyola University Chicago
ELIAS ELHANNANI, Farah; BOUSSALEM, Abou Bakr; and BENBOUZIANE, Mohamed, "Economic Diversification and Trade Openness in Algeria Empirical Investigation". Topics in Middle Eastern and North African Economies, electronic journal, 20, 1, Middle East Economic Association and Loyola University Chicago, 2018, http://www.luc.edu/orgs/meea/
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