Journal of African Development

This study uses structural equation modelling (Smart PLS 4) to measure the impact of some macroeconomic variables (oil barrel price, global oil demand, government spending, inflation, incoming foreign direct investment and gross domestic product) on the volume of Algeria’s foreign trade (exports, imports and trade balance) during the study period (2000–2023), with a focus on the period of the pandemic. 

The study concluded that the examined variables had a direct positive effect on the formation of Algeria’s foreign trade volume during the study period. The most significant of these was the fluctuation in global oil prices, which is considered the main driving force behind exports and imports in Algeria. Furthermore, the study found that the impact of the pandemic on the volume of foreign trade was direct and negative, and indirect through the variables (inflation, government spending, gross domestic product, foreign direct investment, and oil barrel price).