Are FDI inflows and energy price affect the food import dependency in developing countries? Evidence from panel VAR Model
Year: 2015
Type: conference-paper
Abstract: After the global food crisis of 2007-2008, the dependency of developing countries on foodimports has been revived in the economic debates. The ability of a country to import food depends onseveral factors. Considering food security as a priority issue, we focus in this paper on the FDI inflowsand the energy price as a determinant of food import dependency. Indeed, on the one hand FDI as asubstitute/complement to trade flows could impact the depending nation. On the other hand energy pricesaffect production and transport costs, thereby impacting international trade in food productions. Toinvestigate this relationship, we follow the methodology of Love and Zicchino (2006) by estimating apanel vector autoregressive (PVAR) of 40 developing countries for the period between 1990 and 2012.The results show that FDI inflows leads to food import dependency in upper middle income countries andenergy price leads to dependency in upper-middle income countries.
Source: HAL
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4291269326