DOI: https://doi.org/10.36719/2706-6185/46/199-211
Mekki Zobeidi
El-Oued University, Algeria
https://orcid.org/0009-0004-3239-O450
mekkizm39@gmail.com
Salah Ayadi
Oum El Bouaghi University, Algeria
https://orcid.org/0009-0009-9038-8355
salah.ayadi@univ-oeb.dz
Tayeb Debbachi
El-Oued University, Algeria
https://orcid.org/0000-0002-9928-9742
debbachi-tayeb@univ-eloued.dz
Alouane Abdelkader
EL-Oued University, Algeria
https://orcid.org/0009-0003-8465-0237
kaderr39@hotmail.com
The Contribution of Digital Transformation to Supporting
Economic Growth in Algeria
Abstract
Digital transformation is a cornerstone of modern economic development, significantly contributing to enhancing efficiency, productivity, and competitiveness at the national level. This research aims to explore the relationship between digital transformation and economic growth in Algeria using a descriptive-analytical approach. The descriptive method provides a comprehensive overview of Algeria’s digitalization status, while the analytical method examines the relationship between digital transformation and various economic factors. A conceptual framework is developed, incorporating various indicators to assess digital transformation and economic growth. The study's findings indicate that Algeria's heavy reliance on the oil sector poses a challenge to achieving sustainable economic growth, as fluctuations in oil prices impact GDP per capita, highlighting weak economic diversification. Additionally, Algeria's economy suffers from low digital readiness due to insufficient investment in information and communication technology (ICT) infrastructure, limiting the benefits of digital transformation and affecting competitiveness. Furthermore, digital transformation faces challenges related to the lack of effective implementation strategies and institutional incentives, which slow down its impact. The research presents several key recommendations, including diversifying national income sources beyond oil, increasing investments in digital infrastructure, and supporting startups and technological initiatives. It also emphasizes the importance of improving policies related to digital transformation and investing in workforce training on digital skills. Finally, the study calls for future research to provide quantitative evidence of the relationship between digital transformation and economic development in Algeria.
Keywords: Digital transformation, Economic growth, Digital infrastructure, Algeria