مجلة الباحث الإقتصادي
Volume 13, Numéro 2, Pages 263-281
2025-12-30

Can Innovation Drive Industrial Growth? A Sectoral Analysis Of Algeria’s Manufacturing Performance (2013–2024)

Authors : Beghni Souleyman . Belhadj Kamel .

Abstract

This study applies the ARDL model to explore the long-run and short-run effects of knowledge diffusion, intangible assets, and creative goods and services on Algeria’s manufacturing performance. The model employs quarterly data from 2013Q1 to 2024Q4. Results indicate that both knowledge diffusion and intangible assets negatively influence manufacturing output in the long run, with significant coefficients of -0.6061 and -0.2972, respectively. Creative goods and services show a positive but statistically insignificant effect. The model confirms a strong cointegration relationship among variables, with an error correction term of -0.4817, suggesting that 48% of short-run disequilibrium adjusts each quarter toward long-run equilibrium. The model explains 67.56% of the variation in manufacturing performance, indicating good overall fit. These findings highlight the complex role of intangible factors in industrial development and suggest the need for more effective strategies to convert knowledge and intangible assets into productive outcomes within Algeria's manufacturing sector

Keywords

Innovation Output ; knowledge diffusion ; Manufacturing ; WIPO Index