Does trade openness contribute to food security? A dynamic panel analysis |
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| Institution: | 1. DePaul University, Driehaus College of Business, Department of Economics, Chicago, IL 60604, USA;2. FAO, Santiago, Chile;3. European Commission, Joint Research Centre, Sevilla, Spain;1. Guangzhou Sport University, Guangzhou, Guangdong, China;2. Department of Kinesiology and Community Health, College of Applied Health Sciences, University of Illinois at Urbana-Champaign, Champaign, IL;3. Brown School, Washington University, St. Louis, MO;4. School of Economics and Resource Management, Beijing Normal University, Beijing, China;5. Soka University of America, Aliso Viejo, CA;6. Department of International Relations, Tsinghua University, Beijing, China;1. University of Trento, School of International Studies, Italy;2. Center for Research on Energy and Environmental Economics and Policy – IEFE, Bocconi University, Milan, Italy;3. University of Trento, Department of Economics and Management, Italy;4. Observatoire Français des Conjonctures Économiques – DRIC, France;1. University of Stavanger, Norway;2. University of Minnesota, St. Paul, USA;3. University of Idaho, Moscow, USA;4. Duke University, Durham, USA |
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| Abstract: | Despite significant progress in the fight against hunger during the last decades, food insecurity remains a major problem in many countries, especially developing ones. In this study, we use a large cross-country data to investigate the impact of trade openness and other factors on food security, measured by dietary energy consumption. We employ a system GMM approach to account for unobserved heterogeneity, correlated individual effects and potential endogeneity of the explanatory variables. The empirical results reveal that trade openness and economic growth exert positive and significant impacts on dietary energy consumption, and also contribute to improvements in dietary diversity. The results are robust to the inclusion of additional variables capturing specific agro-climatic constraints (e.g. weather-related) and regional/country characteristics and to the sample composition. Most geographical regions are found to have significantly higher food security levels compared to Sub-Saharan Africa. Additional results indicate that besides calorie consumption, trade openness also improves dietary diversity and diet quality-related aspects of food security. |
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| Keywords: | Food security Trade openness System GMM analysis |
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