DSpace Ain Temouchent Belhadj Bouchaib

This study aims to analyze the role of the tourism sector in promoting economic diversification and supporting sustainable growth in Algeria over the period 1995–2022. A dual methodological framework combining theoretical analysis and quantitative econometric application was adopted, employing the Autoregressive Distributed Lag (ARDL) model. The analysis was structured through two separate models to better understand the nature of interactions among the variables: the first measures the impact of tourism on the level of economic diversification, while the second examines the cumulative, joint effect of tourism and economic diversification on sustainable growth. The findings indicate that tourism investment contributes to reducing concentration and enhancing diversification, whereas tourism revenues did not exhibit the same effect due to weak productive linkages. The results further show that economic diversification constitutes an important mediating channel that strengthens the impact of tourism on sustainable growth, despite its limited role stemming from the slow structural transformation of the Algerian economy.