What constrains growth in Algeria? a diagnostic approach

The growth diagnostic approach crafted by Hausmann, Rodrik and Velasco (2005) provides a framework for formulating hypotheses on what may be constraining country’s growth. In this context, paper aims at highlighting the methodology of such an with application to Algeria. Our findings show that low private returns economic activities due micro risks (high taxes, weak contract enforcement & property rights, electricity shortcomings, corruption…), insufficient access finance, are critical binding’s constraint in country. However, unlocking Algeria’s potential requires policymakers should prioritize their intervention removing constraints.