Impact of Trade Openness on Food Security: Evidence from Panel Data for Central Asian Countries

The problem of food insecurity has become increasingly critical across the world since 2015, which threatens the lives and livelihoods of people around the world and has historically been a challenge confined primarily to developing countries, to which the countries of Central Asia, as typical trans...

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Main Authors: Zhilu Sun, Defeng Zhang
Format: Article
Language:English
Published: MDPI AG 2021-12-01
Series:Foods
Subjects:
Online Access:https://www.mdpi.com/2304-8158/10/12/3012
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author Zhilu Sun
Defeng Zhang
author_facet Zhilu Sun
Defeng Zhang
author_sort Zhilu Sun
collection DOAJ
description The problem of food insecurity has become increasingly critical across the world since 2015, which threatens the lives and livelihoods of people around the world and has historically been a challenge confined primarily to developing countries, to which the countries of Central Asia, as typical transition countries, cannot be immune either. Under this context, many countries including Central Asian countries have recognized the importance of trade openness to ensure adequate levels of food security and are increasingly reliant on international trade for food security. Using the 2001–2018 panel data of Central Asian countries, based on food security’s four pillars (including availability, access, stability, and utilization), this study empirically estimates the impact of trade openness and other factors on food security and traces a U-shaped (or inverted U-shaped) relationship between trade openness and food security by adopting a panel data fixed effect model as the baseline model, and then conducts the robustness test by using the least-squares (LS) procedure for the pooled data and a dynamic panel data (DPD) analysis with the generalized method of moments (GMM) approach, simultaneously. The results show that: (1) a U-shaped relationship between trade openness and the four pillars of food security was found, which means that beyond a certain threshold of trade openness, food security status tends to improve in Central Asian countries; (2) gross domestic product (GDP) per capita, GDP growth, and agricultural productivity have contributed to the improvement of food security. Employment in agriculture, arable land, freshwater withdrawals in agriculture, population growth, natural disasters, and inflation rate have negative impacts on food security; and (3) this study confirms that trade policy reforms can finally be conducive to improving food security in Central Asian countries. However, considering the effects of other factors, potential negative effects of trade openness, and vulnerability of global food trade network, ensuring reasonable levels of food self-sufficiency is still very important for Central Asian countries to achieve food security. Our research findings can provide scientific support for sustainable food system strategies in Central Asian countries.
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spelling doaj.art-b73ce30bb10b4a998edbe75aff8aabf02023-11-23T08:17:33ZengMDPI AGFoods2304-81582021-12-011012301210.3390/foods10123012Impact of Trade Openness on Food Security: Evidence from Panel Data for Central Asian CountriesZhilu Sun0Defeng Zhang1Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences, Beijing 100081, ChinaInstitute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences, Beijing 100081, ChinaThe problem of food insecurity has become increasingly critical across the world since 2015, which threatens the lives and livelihoods of people around the world and has historically been a challenge confined primarily to developing countries, to which the countries of Central Asia, as typical transition countries, cannot be immune either. Under this context, many countries including Central Asian countries have recognized the importance of trade openness to ensure adequate levels of food security and are increasingly reliant on international trade for food security. Using the 2001–2018 panel data of Central Asian countries, based on food security’s four pillars (including availability, access, stability, and utilization), this study empirically estimates the impact of trade openness and other factors on food security and traces a U-shaped (or inverted U-shaped) relationship between trade openness and food security by adopting a panel data fixed effect model as the baseline model, and then conducts the robustness test by using the least-squares (LS) procedure for the pooled data and a dynamic panel data (DPD) analysis with the generalized method of moments (GMM) approach, simultaneously. The results show that: (1) a U-shaped relationship between trade openness and the four pillars of food security was found, which means that beyond a certain threshold of trade openness, food security status tends to improve in Central Asian countries; (2) gross domestic product (GDP) per capita, GDP growth, and agricultural productivity have contributed to the improvement of food security. Employment in agriculture, arable land, freshwater withdrawals in agriculture, population growth, natural disasters, and inflation rate have negative impacts on food security; and (3) this study confirms that trade policy reforms can finally be conducive to improving food security in Central Asian countries. However, considering the effects of other factors, potential negative effects of trade openness, and vulnerability of global food trade network, ensuring reasonable levels of food self-sufficiency is still very important for Central Asian countries to achieve food security. Our research findings can provide scientific support for sustainable food system strategies in Central Asian countries.https://www.mdpi.com/2304-8158/10/12/3012food securitytrade opennesscountries of Central Asiasustainable food system
spellingShingle Zhilu Sun
Defeng Zhang
Impact of Trade Openness on Food Security: Evidence from Panel Data for Central Asian Countries
Foods
food security
trade openness
countries of Central Asia
sustainable food system
title Impact of Trade Openness on Food Security: Evidence from Panel Data for Central Asian Countries
title_full Impact of Trade Openness on Food Security: Evidence from Panel Data for Central Asian Countries
title_fullStr Impact of Trade Openness on Food Security: Evidence from Panel Data for Central Asian Countries
title_full_unstemmed Impact of Trade Openness on Food Security: Evidence from Panel Data for Central Asian Countries
title_short Impact of Trade Openness on Food Security: Evidence from Panel Data for Central Asian Countries
title_sort impact of trade openness on food security evidence from panel data for central asian countries
topic food security
trade openness
countries of Central Asia
sustainable food system
url https://www.mdpi.com/2304-8158/10/12/3012
work_keys_str_mv AT zhilusun impactoftradeopennessonfoodsecurityevidencefrompaneldataforcentralasiancountries
AT defengzhang impactoftradeopennessonfoodsecurityevidencefrompaneldataforcentralasiancountries