Institutional Appraisal of Economic Reforms in Algeria

Abstract

This Paper argues that the institutional framework is as much important as the economic factors in explaining the economic and investment outcomes in Algeria.

Moreover, the paper discusses the failure of many informal institutions to follow the path of the formal institutions' change, which resulted in poor performance of the reform policies. The paper argues that the Algerian authorities have to put more efforts into changing informal constraints if the reform policies are to lead significantly enhanced economic performance.

Keywords: Institutions, formal and informal institutional constraints, corruption, cronyism, reform policies

JEL Classification: M20,M21