Algerian Economic Development, 1968–1979: A Multiplier and Linkage Analysis

The development plans for the Algerian economy in the period 1968–79 were based on the establishment of ‘industrializing industries’, with the establishment of growth poles. The effectiveness of this policy is assessed, using multiplier and linkage analysis. It is concluded that the strategy was not effective, largely because of the initially slight integration of the hydrocarbon sector with the rest of the economy and because of neglect of the development of light industry.