This study examines the relationship between higher education (HE) and economic development. Through the use of Algeria as a case study, this study specifically addresses how the Algerian economy needs to integrate HE to promote the country's competitiveness and reduce its dependency on oil. Although the country has adopted European educational paradigms, such as the LMD (Licence, Master, and Doctorate) model, this adoption does not necessarily promote change and progress if the people do not perceive HE as a wealth creator. Thus, although economic investments in HE are essential and economic diversification policies are needed in Algeria, they will remain ineffective without addressing total integration of HE into the economy. Drawing upon existing literature and original qualitative research with key participants in Algerian HE, this study concludes with recommendations on how to make HE a significant contributor to Algeria's economic progress. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]