February 26, 2021 - 1:30 pm
February 26, 2021 - 2:30 pm
AddressH.001, 1A Hoang Dieu, Phu Nhuan View map
Trade liberalization and food security: A new approach with global food security index
Student: Trương Hoàng Yến, VNP 25
Supervisor: Dr. Phạm Thị Bích Ngọc
Free trade has been still a controversial issue in policies aimed at improving the well-being of nations, of which the fundamental demand is food security. This study estimates the impact of trade liberalization on food security, measured by the global food security index (GFSI), for 109 countries in a panel framework over the period 2012–2018 determined by data availability. The main contribution to the existing literature is a causal impact at an overall level of food security instead of each of its dimensions. The system GMM estimator was employed to account for unobserved heterogeneity and potential endogeneity of the explanatory variables. The result indicated that trade openness had a positive and statistically significant effect on GFSI. In particular, one unit change in trade openness was associated with an average of 0.13 unit increase in the overall GFSI in the long run. The food security’s composite indicator was also positively affected by cereal area harvested and level of economic development. While FDI net inflows, rural population, armed conflict, and inflation drove a reduction in the GFSI. Landlocked countries were found to be less food-secure than others. Moreover, sensitivity analysis of alternative measures of openness further lent support to the idea that both trade volume and open policy environment positively impacted food security.