The Issue Of Oil Volatility And Its Effect On Economic Diversification In Recourse Rich Countries

Abstract

Oil-rich economies have historically struggled to operate well because of the issue of oil price volatility. Economic diversification is a concern in this situation. Countries with varied economies can lessen volatility and escape the oil curse. Countries with concentrated domestic and export industries are more prone to swings in their revenues and outputs. Algeria is the focus of our study. It is one of the most significant producers and exporters of oil. By creating management recommendations for Algeria's state and non-state actors, we want to demonstrate the influence of oil price volatility on Algeria's economic diversification. oil income fluctuations to diversify the economy. The results showed a positive relationship between oil price volatility and economic diversification in Algeria. Accordingly, the research recommended the Algerian government pay more attention to the strategy applied in the long term and not focus on temporary decisions as an interaction with international fluctuations.