The Impact of Non-Oil Exports on Economic Growth: A Quantitative Analysis Panel Data Models for Algeria and Selected Oil-Exporting Countries (1990-2023)

Abstract

           This study aimed to measure the impact of non-oil exports on economic growth in Algeria and other Arab oil-exporting countries during the period 1990-2023. Panel data was employed using the PANAL-ARDL model, which provides a more comprehensive analysis by incorporating both cross-sectional and time-series dimensions. Non-oil exports were considered as an independent variable, while economic growth was the dependent variable. The results revealed a positive and significant long-term relationship between non-oil exports and economic growth for the sample countries (Algeria, Saudi Arabia, Qatar, Libya, and Bahrain). Specifically, a 1% increase in non-oil exports led to a 0.9% increase in economic growth, according to the pooled mean group (PMG) estimator. Furthermore, the study found a unidirectional causality running from non-oil exports to economic growth, highlighting the crucial role of non-oil sectors in economic development."