The Effect of the Development of the Resource Sector on the Algerian Economy: Industrialization or De-agriculturalization?

Abstract

This paper discusses the pre- and post-oil Algerian economy, and the emergency of the oil and gas sector, using a modified Forsyth & Kay model. The point raised in this paper is whether the development of the hydrocarbon sector in Algeria would result in capital becoming available for manufacturing industry, so allowing ‘industrialization’, or whether it would cause ‘de-agriculturalization’ as has been suggested for the case of Nigeria.