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Argentina: Feeding on Food Crisis?

  • Ahmet Ozyigit

    (Middlesex University DProf Candidate)

  • Fehiman Eminer

    (Near East University Department of Economics Nicosia, Cyprus)

This article uses a Vector Error Correction Model (VECM) framework toestimate simultaneously the short-run and long-run relationship between foodprice inflation and poverty reduction in Argentina. Results from thecointegration tests reveal that economic growth, food price inflation andpoverty reduction exhibit a long-run relationship. The results from the VECMsupport the argument that there exists a uni-directional causality runningfrom food price inflation and economic growth to poverty reduction, but notthe other way around. Argentina has, in fact, witnessed substantial povertyreduction as a response to the global food crisis by maintaining its position asa net exporter of food products

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Article provided by Asian Economic and Social Society in its journal Journal of Asian Business Strategy.

Volume (Year): 1 (2011)
Issue (Month): 1 (August)
Pages: 1-7

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Handle: RePEc:asi:joabsj:2011:p:1-7
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