The effect of the oil price fluctuation on the algerian economy with an econometric study in the period 1980-2014.

  In this study, we tried to analyze the impact of oil prices fluctuations on the economic growth in Algeria during the period 1980 until 2012. The theoretical part of the study describes the oil economics in Algeria showing that there is a close relationship between oil revenues and economic
growth in Algeria. In the econometric part, we try to examine the relationship between the oil price volatility, and the determinants of economic growth in Algeria, using the co-integration and error correction model (ECM) .The results showed that there is a co-integration in the long term between economic growth, oil prices, unemployment and investment, as confirmed by the response functions
test that exhibited a negative impact of oil price shocks on Algerian economy.