The role of sectoral FDI in promoting agricultural production and improving food security
Résumé
The aim of this paper is to examine the effects of foreign direct investments (FDI) on food
security for 55 developing countries in a panel framework over the period 1995-2009. There
are various measures of food security that can be used. Our first contribution is to build a
composite indicator that synthesizes the food indicators used by the Food and Agriculture
Organization to measure the food availability and food utilization. Second, our empirical
study is based on a model composed of a food security equation and an agricultural
production equation. Our results show that sectoral FDI have different effects on food
security. FDI in the agriculture sector improves food security and FDI in the secondary and
tertiary sector increases the food insecurity. We found a significant FDI’s spillover through
the agricultural production to food security. While the effect is positive with FDI in secondary
sector, it is negative for FDI in the tertiary sector.
Domaines
Sciences du Vivant [q-bio]
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