Djillali Lyabes University, Sidi Bel Abbes, Algeria

The National Conference on:

The use of monetary liquidity in commercial transactions
And its impact on the Algerian banking services.
May 6th -7th 2014

The authors participation form

Family

Name:

ELIAS Family

Name: Family Name: RECHACHE

ELHANNANI

BENBOUZIANE

Surname: Abbassia

Surname: Farah

Surname: Mohamed

Nationality: Algerian

Nationality: Algerian

Nationality: Algerian

Profession: Assistante

Profession:

assistant Profession:

teacher

finance

and

professor
director

of lecturer A.
of Organization Djillali Lyabes

Organization: Djilali lyabes Laboratory MIFMA

Organization Abu Bekr Belkaid Academic

University
Academic
condidate

University

Rank:
at

Abou

PHD University, Tlemcen, Algeria

condidate

Bakr Academic Rank: Professor

Email:

Rank:

PHD

Belkaid university, Tlemcen, Email: mbenbouziane@yahoo.fr

rechach2004@yahoo.fr

Algeria.

Phone number:0555369994

Phone number: 0561329868

Email:
faraheliaselhannani@yahoo.fr
Phone number: 0551 55 47
68

Main Lines Of Communication: the role of financial intermediation by

bank and national economic performance (Axe one)

Financial intermediation and economic growth in Algeria:

Empirical investigation using ARDL model
by :
Farah ELIAS ELHANNANI1 & Mohamed BENBOUZIANE2 & Abbassia RECHACHE3

Abstract:
One of the debates in growth theory is the extent to which financial intermediation with its
functions drive economic growth. Over the past two decades, Algeria has courageously
attempted to modernize its financial system despite social strife and challenges posed by the
large hydrocarbon sector and an inefficient public sector. In fact, various reforms have been
undertaken since the early 1990s to the transition from planned to an open market economy.
This paper investigates empirically the long-run relationship between financial
intermediation and economic growth in Algeria during the period 1970- 2012. The study
employs the autoregressive distributed lag (ARDL) approach to cointegration. The analysis is
carried out using three financial indicators which are the ratio of the credit provided to private
sector by commercial banks as a percentage of GDP, the ratio of credit provided by the
banking sector as percentage of GDP and the broad money supply as a percentage of GDP.
The first section provides the research background based on the conceptual framework of
financial intermediation and financial intermediary functions and a set of empirical studies
about financial intermediation-growth nexus. An analytical framework of the Algerian
financial system evolution is provided in the second section. Finally, the econometric model
and results are shown in the third section.

Key words: financial intermediation; economic growth; Algeria; ARDL model.

Farah ELIAS ELHANNANI is a PhD candidate at the faculty of economics and Management, University of
Tlemcen. And assistant teacher at the university of Sidi Belabbes Tel: 0551 55 47 68, email:
faraheliaselhannani@yahoo.fr.
2

Mohamed BENBOUZIANE is a professor of finance at the faculty of economics and management and director of
MIFMA laboratory, University of Tlemcen. Tel: 0561329868, email:mbenbouziane@yahoo.fr .
3

Abbassia RECHACHE is an assistant lecturer A at Djillali Lyabes University , Sid Bel Abbes, Tel. : 0555369994
email : rechach2004@yahoo.fr

:

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Introduction:
One of the debates in growth theory is the extent to which financial intermediation with its
functions drive economic growth. In fact, the role of financial intermediation in the economic
performance has been examplified in several finance literatures either theoritical or empirical.
The financial intermediation has been defined as the process of indirect finance and is the
primary route for moving funds from lenders to borrowers. This process works through five
main financial functions suggested by Levin (1997): 1-Facilitating the trading, hedging and
pooling risk; 2-Allocating resources; 3-Monitoring managers; 4-Mobilizing savings and 5Facilitating the exchange of goods and services.
Over the past two decades Algeria has courageously attempted to modernize its financial
system despite social strife and unique challenges posed by the large hydrocarbon sector.
However, lending by state-owned banks, mostly to public entities, still dominates financial
intermediation, financial markets remain in their infancy, and the implementation of otherwise
laudable regulatory reforms is lagging.
Under this brief introduction, this paper seeks to answer the following question: the
financial reforms contributed in enhancing economic growth in Algeria?. Thus, the paper
investigates empirically in the impact of the Algerian financial intermediation on the
economic growth. The study employs the autoregressive distributed lag (ARDL) approach to
cointegration over the period 1970-2012. The analysis is carried out using three financial
indicators which are the ratio of the credit provided to private sector by commercial banks as
a percentage of GDP, the ratio of credit provided by the banking sector as percentage of GDP
and the broad money supply as a percentage of GDP.
In order to answer the research question, the paper has been devided into three sections: The
first section provides the research background based on the conceptual framework of financial
intermediation and financial intermediary functions and a set of empirical studies about
financial intermediation-growth nexus. An analytical framework of the Algerian financial
system evolution is provided in the second section. Finally, the econometric model and results
are shown in the third section.

I- Research backgrounds :
I-1- The conceptual framework:
According to Frederick Mishkin (2004)1, financial intermediation is the process of indirect
finance and is the primary route for moving funds from lenders to borrowers. This process has
earned a huge interest after the second world war where the nations and economic factors
were obliged to recover their economies and finance the different economic activities. Thus,
the question remains : how can the financial intermediation earn such importance ?. To
answer this, the study provide the different functions of financial intermediaries in any
economy :
Levine (1997)2 breaks the primary function of financial intermediation into five basic
functions :
a- Facilitate the trading, hedging, diversifying, and pooling of risk :
In the presence of specific information and transaction costs, financial markets and
institutions may arise to ease the trading, hedging, and pooling of risk. This subsection
considers two types of risk: liquidity3 and idiosyncratic risk. Liquidity risk arises due to the
uncertainties associated with converting assets into a medium of exchange. Informational
asymmetries and transaction costs may inhibit liquidity and intensify liquidity risk.
b- Allocate resources :
Because many firms and entrepreneurs will solicit capital, financial intermediaries, and
markets that are better at selecting the most promising firms and managers will induce a more
efficient allocation of capital and faster growth.
c- monitor managers and exert corporate control :
Besides reducing the costs of acquiring information ex ante, financial contracts, markets,
and intermediaries may arise to mitigate the information acquisition and enforcement costs of
monitoring firm managers and exerting corporate control ex post, i.e., after financing the
activity.

Mishkin F. ; The economics of money, banking and financial markets ; Wesley series in economics ; Pearson
eddition ; 2004.
2
Levine R. ; Financial development and economic growth : views and agenda ; Jouranl of economic
literature ; Vol.XXXV(June 1997) ; PP 688-726.
3

Liquidity is the ease and speed with which agents can convert assets into purchasing power at agreed
prices.

d- mobililize savings :
Mobilizationpoolinginvolves the agglomeration of capital from disparate savers for
investment. Without access to multiple investors, many production processes would be
constrained to economically inefficient scales.
e- facilitate the exchange of goods and services.

Levine has also provided a theoretical approach to finance and growth in which he showed
how the financial intermediation influence economic growth through the financial functions
cited above (Figure1) :

Figure 1. A Theoretical Approach to Finance and Growth

Source : Levine R. ; Financial development and economic growth : views and agenda ;
Jouranl of economic literature ; Vol.XXXV(June 1997) ; PP 688-726.

The figure above shows that the financial intermediation works with its five functions to
enhance the economic growth through two channels : capital accumulation and technological
innovation. In order to understand the role of innovation in the impact of financial
intermediation on economic growth, Aghion and Banarjee (2005) proposed a model to
demonstrate such relationship and it has been simplified by Van Der Ploeg and Poel hekke
(2008):

The price level Pt is closed to the nominal exchange rate St :

The nominal wages Wt are pre-determined:

[

[ ]

is a constant
At is the productivity

: is the equation of output following the production function where (lt)

indicates the employment.

The profits are determined by:

The next periods value of innovations:

[ ]

The constant is superior to the unity if entrepreneurs have sufficient funds to innovate,
otherwise:

. Note that, firms have sufficient funds (profits plus resource revenues

Qt) to innovate if they have enough cash flow to deal with the adverse liquidity shocks which
is interpreted by the equation:
(

: is a measure of financial development

z is a random liquidity shock.

The probability of innovation represented by the cumulative density function:

(

) . (1)

This implies that the higher the profits (t) and the more developed financial system (), the
higher the ability of firms to overcome liquidity shocks and thus the higher the probability of
innovations.
[

The economic growth rate is given by:

(

) [ ] (2)

From equations (1) and (2), the economic growth increases with the expected probability of
innovation.

I-2- The empirical literature on the finance-growth nexus:

The relationship between financial intermediation and economic growth has earn a huge
interest in the empirical literature. Starting by the pioneer work of Levine, Loayza and
Beck(1999), this section, sumarizes the most important studies which have tackled this
nexus.
Loayza et al. (1999)1 assessed whether the development of financial intermediaries exersts
a causal influence on economic growth. Using cross-sections, instrumental variables
procedurs and panel techniques, they found that the development of financial intermediaries
has a large causal impact on growth. They alwo showed that cross-country differences in legal
and accounting systems help determine differences in legal and in financial development.
Thus, legal and accounting reform that strengthens creditor rights, contracts enforcement and
accounting practices boosts financial developmant and economic growth. Sinha (2001)2
revised the role of financial intermediation on economic growth under the Shumpeterian
analysis. The author examined how the economy is affected when there are banking crises
arguing that there are important contributions by banks and other financial intermediaries on
the economy.
In a different path, Gantan and Rancier (2004)3 presented empirical support for the existence
of wealth effects in the contribution of financial intermediation to economic growth, and
offers a theoretical explanation for these effects. Using GMM dynamic panel data techniques,
they show that the exogenous contribution of financial development on economic growth has
different effects for different levels of income per capita.
Lee (2005)4 examined the relationship between financial intermediation and economic
performance in Canada for the periods 1870-1926 and 1948-2002 using time series
econometrics. A Vector Auto Regression is constructed to establish the relationship between
the financial and the real sectors. Granger causality tests showed evidence that financial
development leads to economic growth for the 1948-2002 sample and no evidence of the

Loayza, Levine and Beck ; Financial intermediation and growth, causality and causes ; Policy Research
working paper ; World Bank ; 1999.
2

Sinha T., The role of financial intermediation in economic growth : Schumpeter revised ; Chapter
2 of S. B. Dahiya and V. Orati (eds.) Economic Theory in the Light of Schumpeter's Scientific Heritage,
Spellbound Publishers, Rohtak, India, 2001.
3
Gaytan and Ranciere ; Wealth, financial intermediation and economic growth ; Banco De Mexico ; April
2004.
4
Lee J. ; Financial intermediation and economic growth, evidence from Canada ; Presented at the
Eastern Economics Association New York, New York, March 4, 2005.

reverse. In 1870-1926, only the monetary base variable is significant for growth. The other
variables were insignificant.
Augier and Soedarmono (2011)1 used a neo-classical growth framework to reformulate the
finance-growth nexus. Their model was characterized by the existence of multiple steady
states equilibrium with threshold effect that impedes the economy to reach a long-run higher
steady state equilibrium. Furthermore, they showed that financial intermediary is better than
financial market, in order to reduce threshold effect and to ensure the long-run steady state
equilibrium of capital stock.
In a similar path to our study, Shittu (2012)2 and Safiat Ali (2013)3 tested the existence of a
long run relationship between financial intermediation and economic growth in Nigeria and
Sudan respectively over the period 1970-2010. The main finding was that in both countries,
financial intermediation has an important impact on economic growth.

II-Overview on the Algerian financial sector:

Over the past two decades Algeria has courageously attempted to modernize its financial
system despite social strife and unique challenges posed by the large hydrocarbon sector.
However, lending by state-owned banks, mostly to public entities, still dominates financial
intermediation, financial markets remain in their infancy, and the implementation of otherwise
laudable regulatory reforms is lagging.
Because of hydrocarbon-funded state support to borrowers and lenders alike, the financial
system appears stable although this stability carries high costs and distorts risk pricing and
governance.4
The Algerian financial system is dominated by the banking sector which accounts for 93
percent of total financial system assets. It constitutes of twenty nine (29) banks and financial
institutions where:5 six public banks; 14 private banks with foreign capitals in which one with

Laurent Augier and Wahyoe Soedarmono, (2011) ''Threshold Effect and Financial Intermediation in Economic
Development'', Economics Bulletin, Vol. 31 no.1 pp. 342-357.
2

Shittu A.I. ; Financial intermediation and economic growth in Nigeria ; British Journal of Arts and
Social Sciences ISSN: 2046-9578, Vol.4 No.2 (2012) ; BritishJournal Publishing, Inc. 2012
http://www.bjournal.co.uk/BJASS.aspx
3

Safiat A.S.A. ; Financial intermediation and economic growth in Sudan : an empirical

investigation ; British Journal of Economics, Management & Trade 3(4): 332-358, 2013
4

Algeria: Financial Sector assessment program (FSAP); International Monetary Fund and the World Bank;
SecM2004-0344; July 2004.
5
Data are brought from the annual report of the Bank of Algeria (Rapport dactivit 2012).

mixed capital; three financial institutions in which two are public; 5 leasing companies and
one mutual insurance with the status of a financial institution.
Table1: The structure of the Algerian banking sector.

Source: International Institute of Finance2010.

II-1- The financial reforms during 1990-1999
After the crisis of 1986 and the failure of the centralized planed system, the Algerian
government started to think to privatize its economy where 1990 was the key year of that
transition. Algeria implemented several reforms starting by the financial sector under the
following objectives1: reduction of the direct government intervention and strengthen the role
of market forces in the allocation of financial resources; improvement of the financial
institutions capacity to mobilize the domestic saving; enhancing the effectiveness of monetary
policy instruments; promoting competition among banks and strengthening their financial
soundness. In April 1990, Algeria has adopted the law on currency and credit (90-10) to grant
greater independence to the central bank (Bank of Algeria since 1990) and strengthen its
capacity for banking supervision. Under this law and during the decade of 1990s, the
following decisions have been taken:
Deposit interest rates were fully liberalized and ceilings on lending rates were replaced
by limits on banking spreads in 1994;
The transfer of monetary policy responsibilities to the central banks and the
recapitalization of commercial banks;
Foreign participation in the capital of the domestic banks was allowed since 1994;
The dismantling of the restrictions on the use of foreign exchange began in April 1994
and an interbank foreign exchange market was established since 1996.

Jbili, Enders and Treichel ; Financial sector reforms in Algeria, Morocco and Tunisia : a preliminary
assessment ; International Monetary Fund working paper 97/81; 1997; P12.

It can be observable that most of the reforms have been applied since 1994 which was the
year of starting the programs of structural adjustment instructed by the International Monetary
Fund and the World Bank.
II-2- Financial reforms during 2000-2012:
In this period, the financial reforms continued to be applied under a regulatory and technical
framework in which we stress the following points1:
Order 03-11 on Currency and Credit,

The fivefold increase in the minimum capital requirement for banks and finance
companies,

The establishment of a real-time gross settlement (RTGS)2 system for large-value

payments in February 2006, and a clearing system for retail payments in the first half
of 2006,

The legislation on mortgage securitization,

financial leasing for real estate, factoring, promotion of venture capital,

the overhaul of the Algiers stock exchange since 2003,

the fight against money laundering,

The strengthening of the internal audit function (audit committees) and personnel
management function at government banks (performance contracts),

Order n 10-04 of August 26th 2010 which modifies and completes the order 03-11.

The figure below shows the evolution in the key variables of the banking system during the
period of the study:

CGAP; Microfinance in Algeria: challenges and opportunities; Joint CGAP and AFD Mission under the
auspices of the Ministry of Finance Deputy Minister for Financial Reform; Final Report June 2006.
2
The RTGS16 system has been operational since early February 2006. It handles large-value interbank
payments with a minimum payment amount of DZD 1 million.

Figure1: the evolution of the banking systems variables 1990-2012

100
80
60

domestic credit to the private

sector(% of GDP)

40

domestic credit provided by the

banking sector (% of GDP)
broad money (%of GDP)

20
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
-20

Source: structured by the author using data of the World Bank.

III-The econometric study:

III-1- Data and methodology:
This study seeks to test the longrun relationship between three financial indicators and
economic growth in algeria over the period 1970-2012. It uses the bound test approach to
cointegration (ARDL model) developed by Pesaran (2001).
III-1-1 Description of the data:
The data are all taken from the world development indicators (the World Bank data basis)
for the period 1970-2012 (43 observations).
Financial indicators:
In order to show the financial development effect, we use first the domestic credit provided
by the banking sector (Credit). The second financial indicator used is the domestic credit to
the private sector (Private), and third, the broad money supply (money and quasi money M2)
is also included in our model. Data are measured as percentage of GDP.
Economic growth:
The variable is calculated by the annual growth rate of the real gross domestic product per
capita at constant 2005 U.S. $.

III-1-2 Methodology:
To empirically analyse the long-run relationships and dynamic interactions among the
variables of interest, the model has been estimated by using the bounds testing (or
autoregressive distributed lag (ARDL)) cointegration procedure, developed by Pesaran 20011.
The procedure is adopted for the following three reasons. Firstly, the bounds test procedure is
simple. As opposed to other multivariate cointegration techniques such as Johansen and
Juselius, it allows the cointegration relationship to be estimated by OLS once the lag order of
the model is identified. Secondly, the bounds testing procedure does not require the pretesting of the variables included in the model for unit roots unlike other techniques such as the
Johansen approach. It is applicable irrespective of whether the regressors in the model are
purely I(0), purely I(1) or mutually cointegrated. Thirdly, the test is relatively more efficient
in small or finite sample data sizes as is the case in this study. The procedure will however
crash in the presence of I(2) series.
Regarding

the objective of this study and the model proposed by Pesaran, the following steps

are pursued :
1- Unit root tests for the variables, Augmented Dickey Fuller (ADF) test is used. This
test of stationarity is used only to avoid the occurrence of spurious results and to
confirm that the variables are not I(2).
2- Bound test for cointegration, in this step, OLS method is used to estimate the
following model :

The long run relationship is shown by testing the significance of the parameters:
using F statistic provided by WALD-test. The null hypothesis for nocointegration is : H0 :

3- After testing for the long run association and in the case of the occurrence of
cointegration between variables, ARDL model should be estimated to measure this
relationship by estimating the following model:

Pesaran, Smith and Shin ; Bound testing approaches to the analysis of long run relationships ; Journal of
applied Econometrics ; Vol.16 Isuue3 ; June 2001 ; PP 289-326.

III-2- Empirical results:

The Philippe-Perron test for unit roots has shown that non of the variables is I(2) which
means that the ARDL is appropriate to be used in the estimation of the relationship between
variables of the study.
Table2: Philippe-Perron test for stationarity
level
Intercept

First difference
Trend and Intercept

Trend

intercept

intercept

RGDP

t= -8.1

-8.23

growth

(0.000)***

(0.000)***

-1.71

and Result

////

////

I(0)

-1.73

-5.15

-5.07

I(1)

(0.41)

(0.71)

(0.0001)*** (0.0009)***

-0.29

-1.73

-5.28

(0.91)

(0.71)

(0.0001)*** (0.0003)***

-1.14

-2.24

-4.8

(0.69)

(0.45)

(0.0003)*** (0.002)***

rate (y)
M2

Credit

Private

-5.46

-4.76

I(1)

I(1)

*, **, *** level of significance at 10%, 5% and 1% respectively, values between () are
probabilities of t-statistics
The results show that some of the variables are I(1) while others are I(0) which leads us to
use upper and lower critical bounds of F-statistic suggested by Pesaran et al. (2011) to test the
null hypothesis H0 for no-cointegration between the variables.

Table3: Cointegration test (bounds test): (Dependent variable (Real GDP growth rate))
the

F-statistics

Critical value bounds of the F-statistics

financial

1% level

indicators

I(0)

I(1)

I(0)

I(1)

5.15

6.36

3.79

4.85

5.15

6.36

3.79

4.85

5.15

6.36

3.79

4.85

M2

10.27

5% level

(0.0004)***
Credit

8.12
(0.001)***

Private

6.62
(0.003)***

The F-statistics are calculated using the WALD test for coefficients diagnostic. The critical
values are brought from Pesaran et al. (2001), Table C1 iii, case III.
Table 3 reveals the existence of a long run relationship (cointegration) between each one of
the financial indicators and the growth of the GDP. The calculated F-statistics is greater than
the upper critical value bound which means that we reject the null hypothesis H0 of no
cointegration and we accept the alternative one which reflects the existence of cointegration
relationship between the variables used in the study.
After testing for the cointegration, the next step in the ARDL model is to estimate this
long-run

relationship

by

estimating

the

model:

Before the estimation, ARDL approach needs the lag orders to be determined using Schwartz
information criterion. The estimation results are shown in Table 4.

Table4: Estimation results of the long run relationship (ARDL model) for the dependent
variable (real GDP growth):
Independent

variables Model 1

Model 2

Model 3

-0.23

-0.23

-0.21

(1.73)*

(1.70)*

(1.58)

(explanatory)
Lagged(y)

M2t-1

-0.11
(2.00)*

Creditt-1

-0.04
(1.68)

Privatet-1

-0.04
(1.54)

The constant

0.08

0.03

0.03

(2.56)**

(0.87)*** (2.87)***

R-squared

14%

11%

10%

Adjusted R-squared

9%

7%

5%

F-statistic

3.13*

2.51*

2.28

Values in parenthesis are the absolute values of the t-statistics. *, **, *** indicate significance at
10%, 5% and 1% respectively.

The estimation for the cointegration linkage between financial intermediation and economic
growth in Algeria shows that only the money supply indicator (M2) has a significant effect on
economic growth where the model 1 indicates that in the long run, an increase of 1% in M2
led to a decrease in economic growth with 0.11%. This negative association confirms the
ineffective Algerian monetary policy in promoting economic growth and thus, the expansion
in the broad money supply has no basis in the real activity. The negative and non-significant
results for the other two indicators (Credit and Private) can be explained by the weak
contribution of the financial sector and the private sector in the economic activity because of
the planned economic system used before 1990. Econometrically, the three models shows that
the Algerian economic growth is affected by its previous value which means that the
economic growth has a trend effect. The low coefficients of determination (10 to 14%)
indicate the low contribution of the independent variables used in the study to explain the
growth GDP and confirm the existence of other variables that have been excluded in this
research.

References:
1.

Aghion P.and Banerjee A. Volatility and growth , Oxford University Press, 2005.

2.

Algeria: Financial Sector assessment program (FSAP); International Monetary Fund

and the World Bank; SecM2004-0344; July 2004.

3.

CGAP; Microfinance in Algeria: challenges and opportunities; Joint CGAP and

AFD Mission under the auspices of the Ministry of Finance Deputy Minister for Financial
Reform; Final Report June 2006.
4.

Gaytan and Ranciere ; Wealth, financial intermediation and economic growth ;

Banco De Mexico ; April 2004.

5.

Jbili, Enders and Treichel ; Financial sector reforms in Algeria, Morocco and

Tunisia : a preliminary assessment ; International Monetary Fund working paper 97/81;

1997.
6.

Laurent Augier and Wahyoe Soedarmono, (2011) ''Threshold Effect and Financial

Intermediation in Economic Development'', Economics Bulletin, Vol. 31 no.1 pp. 342-357.

7.

Lee J. ; Financial intermediation and economic growth, evidence from Canada ;

Presented at the Eastern Economics Association New York, New York, March 4, 2005.
8.

Levine R. ; Financial development and economic growth : views and agenda ;

Jouranl of economic literature ; Vol.XXXV(June 1997) ; PP 688-726.

9.

Loayza, Levine and Beck ; Financial intermediation and growth, causality and

causes ; Policy Research working paper ; World Bank ; 1999.

10. Mishkin F. ; The economics of money, banking and financial markets ; Wesley
series in economics ; Pearson eddition ; 2004.
11. Pesaran, Smith and Shin ; Bound testing approaches to the analysis of long run
relationships ; Journal of applied Econometrics ; Vol.16 Isuue3 ; June 2001 ; PP 289-326.
12. Safiat A.S.A. ; Financial intermediation and economic growth in Sudan : an
empirical investigation ; British Journal of Economics, Management & Trade 3(4): 332358, 2013
13. Shittu A.I. ; Financial intermediation and economic growth in Nigeria ; British
Journal of Arts and Social Sciences ISSN: 2046-9578, Vol.4 No.2 (2012) ; BritishJournal
Publishing, Inc. 2012 http://www.bjournal.co.uk/BJASS.aspx
14. Sinha T., The role of financial intermediation in economic growth : Schumpeter
revised ; Chapter 2 of S. B. Dahiya and V. Orati (eds.) Economic Theory in the Light of
Schumpeter's Scientific Heritage, Spellbound Publishers, Rohtak, India, 2001.
15. Van der ploag F., Poelhekke S., Volatility and natural resource curse, university of
Oxford, 2008.

16. www.worldbank.org