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

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.