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EXPLORING THE LINK BETWEEN FINANCIAL INCLUSION AND FOOD SECURITY IN ALGERIA A VECM Approach1

Author

Listed:
  • Chetouane Hania

    (Pan-African Institute for Development, African Academy of Sciences and University of Dschang, University of Ebolowa, Cameroon)

  • Boniface Ngah

    (University of Yaoundé [Cameroun])

  • Sonia Chetouane

    (UMSBJ - Université Mohammed Seddik Benyahia [Jijel] | University of Jijel)

Abstract

This study explores the link between financial inclusion and food security in Algeria from 2003 to 2022. Using a composite financial inclusion index and the Vector Error Correction Model (VECM), we analyse the data, subjecting it to various diagnostic tests. Surprisingly, our results reveal that financial inclusion (FI) has a significant and positive impact on undernourishment prevalence, indicating a negative effect on food security in both the short and long term. Likewise, food imports (FIM) contribute to higher undernourishment prevalence, implying a weakening of food security in the long-run. Conversely, unemployment rate (UEM) and food production (FOP) show no substantial long-term impact on food security, although UEM has an opposing effect in the short run, meaning it improves food security at the short term; which can be attributed to the informal economy and other State's policies. Notably, income per capita (INCAPITA) negatively affects undernourishment prevalence, improving food security. These findings offer a nuanced understanding of the complex relationship between financial inclusion and food security in Algeria, emphasizing the need for multifaceted, contextspecific policies to address the country's unique challenges.

Suggested Citation

  • Chetouane Hania & Boniface Ngah & Sonia Chetouane, 2024. "EXPLORING THE LINK BETWEEN FINANCIAL INCLUSION AND FOOD SECURITY IN ALGERIA A VECM Approach1," Post-Print hal-04678454, HAL.
    • Handle: RePEc:hal:journl:hal-04678454
    Note: View the original document on HAL open archive server: https://hal.science/hal-04678454
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    Keywords

    financial inclusion food security prevalence of undernourishment Vector Error correction model (VECM) Algeria JEL Classification Codes: B26 C58 D53 E44 L66; financial inclusion; food security; prevalence of undernourishment; Vector Error correction model (VECM); Algeria JEL Classification Codes: B26; C58; D53; E44; L66;
    All these keywords.

    JEL classification:

    • B26 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Financial Economics
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • B26 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Financial Economics
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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