Research on World Agricultural Economy

Regional Agricultural Production Diversity in Algeria: A Panel Data Analysis of Land Allocation Effects (2000–2014)

Khaled Mili

Department of Quantitative Methods, College of Business King Faisal University, Al‑Ahsa 31982, Saudi Arabia

Ismail Ben Gana

Department of Quantitative Methods, College of Business King Faisal University, Al‑Ahsa 31982, Saudi Arabia

Fatima Zohra Bensghier

Department of Economics, Université Larbi Tebessi, Route de Constantine, Tebessa 12002, Algeria

Taoussi Brahim

Laboratory of Applied Studies in Business and Management Sciences, Higher School of Commerce, ESC, Koléa 42003, Algeria

DOI: https://doi.org/10.36956/rwae.v6i4.2183

Received: 21 May 2025 | Revised: 6 June 2025 | Accepted: 27 June 2025 | Published Online: 26 November 2025

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Abstract

This research examines the relationship between land allocation and agricultural production diversity across Algeria's 48 states from 2000 to 2014, addressing the agricultural sector's limited 2.6% GDP contribution despite vast arable lands spanning diverse agro-ecological zones. Using panel data analysis with fixed effects (n = 672 state-year observations), hierarchical cluster analysis, and principal component analysis, the study quantifies the impact of land allocation decisions on production outcomes. Results reveal land allocation explains varying degrees of production variance: 95.54% for legumes, 73.16% for grains, 58.02% for pulses, and 43.39% for industrial crops. Nine distinct agricultural clusters were identified, showing significant north-south disparities, where northern regions exhibit greater crop diversification with higher yields (mean = 182.4 quintals/hectare), while southern regions demonstrate specialized production with lower productivity (mean = 75.3 quintals/hectare). This first comprehensive regional analysis of  the effects of land allocation on agricultural diversity in Algeria provides a quantitative foundation for evidence-based policy development, suggesting regionally tailored agricultural approaches that consider local conditions and capabilities. The identification of distinct regional agricultural clusters enables targeted interventions to optimize land use according to regional comparative advantages, potentially increasing productivity and enhancing food security.

Keywords: Agricultural Diversiϐication; Land Allocation Efϐiciency; Panel Data Analysis; Regional Development; Algerian Agriculture; Production Patterns; Spatial Heterogeneity; Agricultural Policy

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