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This paper employs threshold cointegration technique that allows for asymmetric adjust-ment towards a long-run equilibrium relationship in order to examine the relationship between international and domestic prices of wheat in Algeria. The short-run adjustments are also examined with asymmetric error correction models. The analysis is based on annual series of international and domestic wheat prices. The time interval for the study runs from 1965 to 2021 using official data from national and international official organizations. The results indicate that the price transmission between the domestic and international price level of wheat is asymmetric, especially in the presence of structural breaks. The asymmetric error correction model with threshold cointegration provides strong evidence supporting asymmet-ric price behavior. Increases in the international price of wheat are transmitted more quickly to domestic prices than declines, which exhibit the increased vulnerability of the domestic market to be reconsidered.

This paper analyzes farmers’ decision to transact with the cooperatives, i.e., the propensity to cooperate. We aim to empirically analyze the driving factors affecting both cooperative membership and purchasing decisions of farmers in Algeria. The survey data was conducted within the National Program of Research including 625 sampled farmers. The study distin-guishes four types of participation according to farmers’ decision of membership and pur-chasing inputs. The empirical results from the Bivariate Probit regression model suggest that specialization, human capital, access to services, and geographic location are significant fac-tors that influence farmers’ propensity to cooperate and participation behavior as a devoted membership. This empirical finding has important implications for Algerian policy-makers in their efforts to promote efficient agricultural markets through producer cooperatives and other agricultural policies.