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The Impact of Food Crisis on Government Debt in the Arab Region

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  • Ali, Hoda Abd El Hamid

Abstract

This study explores the Impact of Food Prices Crisis on budget deficits in the Arab region. Panel data is used for the period of 2000 to 2012 in sixteen countries in the region. We run multi regression models which are used to estimate the Impact of food crisis on government debt in high, middle and low income countries before and after the food crisis period in 2006. The analysis reveals that the changes in food prices have a negative and significant impact only on the low and middle income countries' government debt before the crisis. We also found that the slow growth in GDP after the global economic and food crisis period, political instability, lagged deficits, real interest rates, and unemployment were also important determinants of government debt in most of the models estimated.

Suggested Citation

  • Ali, Hoda Abd El Hamid, 2014. "The Impact of Food Crisis on Government Debt in the Arab Region," MPRA Paper 59923, University Library of Munich, Germany, revised 2014.
    • Handle: RePEc:pra:mprapa:59923
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    References listed on IDEAS

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    1. Roubini, Nouriel & Sachs, Jeffrey D., 1989. "Political and economic determinants of budget deficits in the industrial democracies," European Economic Review, Elsevier, vol. 33(5), pages 903-933, May.
    2. Rabah Arezki & Markus Brückner, 2011. "Food Prices and Political Instability," CESifo Working Paper Series 3544, CESifo.
    3. Zoltan Bakucs & Imre Ferto, 2013. "World prices and domestic food price spikes," CERS-IE WORKING PAPERS 1304, Institute of Economics, Centre for Economic and Regional Studies.
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    Keywords

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    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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