ABSTRACT
The model aggregates into a single substructure and treats as a unique sector all economic activities giving rise to the gross domestic non-oil product. As opposed to the oil substructure, the non-oil substructure explicitly considers the mechanism of production through a production function. The formulation of the production function implies that appropriate amounts of each factor must be supplied by the economic system. The structure of the non-oil sector is based upon three major flows: the flow of produced and imported goods into the inventory, the flow of orders to the sector, and the flow of shipments to the various demanders. The accumulation of goods into the inventory permits the non-oil sector to absorb more easily the fluctuations of demand. A large inventory multiplier consequently leads the economy to allocate more financial resources to domestic development and modifies the long-term structural evolution of the economy through the reinforcement of internal accumulation to the detriment of the financial assets.
