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Argentina: Feeding on Food Crisis?

Author

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  • Ahmet Ozyigit
  • Fehiman Eminer

Abstract

This article uses a Vector Error Correction Model (VECM) framework to estimate simultaneously the short-run and long-run relationship between food price inflation and poverty reduction in Argentina. Results from the cointegration tests reveal that economic growth, food price inflation and poverty reduction exhibit a long-run relationship. The results from the VECM support the argument that there exists a uni-directional causality running from food price inflation and economic growth to poverty reduction, but not the other way around. Argentina has, in fact, witnessed substantial poverty reduction as a response to the global food crisis by maintaining its position as a net exporter of food products.

Suggested Citation

  • Ahmet Ozyigit & Fehiman Eminer, 2011. "Argentina: Feeding on Food Crisis?," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 1(1), pages 1-7.
    • Handle: RePEc:asi:joabsj:v:1:y:2011:i:1:p:1-7:id:3993
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