ECONOMIC DISTRIBUTION AND REGIONAL DISPARITIES IN ALGERIA: ANALYZING ACTIVITIES AND ESTABLISHMENTS ACROSS PROVINCES AND SMALL AND MEDIUM-SIZED TOWNS

Abstract

This paper examines the economic landscape of Algeria, characterized by a dominant state sector, substantial hydrocarbon resources, and ongoing diversification efforts. It highlights the significant role of the private sector, which comprises approximately 98% of economic entities, primarily small and micro-enterprises. The findings reveal that these smaller businesses are crucial for economic activity, yet they face numerous challenges, including limited access to finance and uneven market dynamics influenced by regional disparities. Through quantitative analysis of the latest Algerian Economic Census, the paper maps the distribution of economic activities across Algeria's provinces and small and medium-sized towns (SMSTs), illustrating varying levels of development and the predominance of certain sectors, notably trade and construction. The study underscores the concentration of economic entities in major urban centers, such as Algiers, Constantine, and Oran, while exposing the underdevelopment in southern provinces. Policy implications emphasize the need for targeted interventions to promote balanced growth, enhance infrastructure, support SMEs, and address the disparities that hinder inclusive development. Ultimately, this research provides insights into Algeria's economic dynamics and recommends fostering sustainable growth across its diverse regions, thereby contributing to the broader discourse on economic diversification and regional development in emerging economies.