CHAPTER 7
Services Trade as an Engine of Development: Situation and Prospects in Algeria Olivier Cattaneo, Said Ighilahriz, José R. López-Cálix, and Peter Walkenhorst
Trade in services can make a substantial contribution to economic development, by improving the availability, efficiency, and quality of services in the domestic market and increasing the supply and efficiency of inputs to production. Services are often the most rapidly growing sector in developing economies. They are a major source of employment and can help improve export diversification (for example, through tourism and integration with the global economy). The purpose of this chapter is to raise awareness of critical issues in Algeria and help the government define priorities for policy reform.
Quantifying the Importance of Services for Algeria Statistics on trade in services are weak in Algeria, as in many countries, developed and developing. The collection of data is complicated by the nature of the exchange and the different modes of delivery commonly used, as described in the General Agreement on Trade in Services (GATS): cross-border (mode 1), consumption abroad (mode 2), 163