Structural changes in financial sector and economic policy impact in Algeria
In the spirit of inter-industry analytical framework, this work examines the cross-institution relationship by means of a Financial Social Accounting Matrix multipliers model for the case of Algeria. Our purpose is to understand the role of structural institutional changes implemented in the financial sector and their contribution to overall economic growth. More specifically, we attempt to quantify these changes and their impact on production, income, transfers, and saving. The empirical investigation is based on the 2003 and 2011 Financial Social Accounting Matrices built for the Algerian economy and on the derived multipliers model. The analysis of backward and forward linkage indices and the results obtained from the hypothetical extraction method show that financial structural changes have led to an expansion of the production sectors and an increase of the income of the production factors and the resources of the institutional sectors.