مجلة اقتصاديات الاعمال والتجارة
Volume 11, Numéro 2, Pages 285-301
2026-09-30

Trade Openness And External Trade Dynamics In Algeria: A Time-series Analysis Of Exports, Imports, And Trade Balance (1990–2024)

Authors : Zemri Bouazza Elamine .

Abstract

This study examines the impact of trade openness on Algeria’s foreign trade performance over the period 1990–2024. It focuses on the dynamics of exports, imports, and the trade balance within a time-series framework. To capture both short-run adjustments and long-run relationships, the study employs the Autoregressive Distributed Lag (ARDL) approach. Trade openness is used as the main explanatory variable, while inflation, GDP growth, oil prices, the real effective exchange rate, and foreign exchange reserves are introduced as control variables. The results indicate that trade openness has a significant effect on Algeria’s external trade, although the magnitude and direction of the impact differ across trade indicators. The findings also show that Algeria’s trade performance remains strongly influenced by structural dependence on hydrocarbons and by external shocks. The study concludes that trade openness alone is insufficient unless accompanied by diversification and competitiveness-enhancing policies.

Keywords

Trade openness ; Foreign trade performance ; Exports ; Imports ; Trade balance ; Algeria