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The asymmetric impact of agricultural subsidies on structural transformation in Algeria: A NARDL approach

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  • Moulay Ali, Houari
  • Mokhtari, Faycal
  • Seghir Guellil, Mohamed
  • Tsabet, Abderrahmane

Abstract

[EN] This study aims to assess the impact of agricultural subsidies on structural transformation (STI). We employed a NARDL model using Algerian data spanning from 1970 to 2020. The agricultural subsidy is represented by two variables: the first variable is total agricultural support (ST). The second variable is to determine the effect of decoupling: Separating subsidies from production decisions (SP). The long-run results reveal negative estimates for both increases and decreases in ST. Regarding SP, an increase in this type of subsidy leads to a reduction in STI, while reducing SP leads to an increase in STI. [ES] Este estudio tiene como objetivo evaluar el impacto de los subsidios agrícolas en la transformación estructural (STI). Empleamos un modelo NARDL utilizando datos argelinos que abarcan desde 1970 hasta 2020. El subsidio agrícola está representado por dos variables: la primera variable abarca el apoyo agrícola total (ST). La segunda variable busca determinar el efecto del desacoplamiento: separar los subsidios de las decisiones de producción (SP). Los resultados a largo plazo revelan estimaciones negativas tanto para aumentos como para disminuciones en ST. En cuanto a SP, un aumento en este tipo de subsidio conduce a una reducción en STI, mientras que la reducción de SP lleva a un aumento en STI.

Suggested Citation

  • Moulay Ali, Houari & Mokhtari, Faycal & Seghir Guellil, Mohamed & Tsabet, Abderrahmane, 2025. "The asymmetric impact of agricultural subsidies on structural transformation in Algeria: A NARDL approach," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 25(01), June.
    • Handle: RePEc:ags:earnsa:358849
    DOI: 10.22004/ag.econ.358849
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    References listed on IDEAS

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    1. Brummer, B. & Glauben, T. & Lu, W., 2006. "Policy reform and productivity change in Chinese agriculture: A distance function approach," Journal of Development Economics, Elsevier, vol. 81(1), pages 61-79, October.
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