Relationship between distortionary agricultural trade policies and food security in developing countries: a causal analysis

In an increasingly globalised world, agricultural trade and food security inevitably goes hand in hand. On paper, the idea of free agricultural trade continues to be a contentious one as opinions remain divided whether it can lead to greater access and variability of food to a larger number of pe...

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Main Authors: Mohamed, Shaheera, Khalid, Haniza
Format: Article
Language:English
Published: Global Academic Excellence 2018
Subjects:
Online Access:http://irep.iium.edu.my/64601/
http://irep.iium.edu.my/64601/1/64601_Relationship%20between%20distortionary.pdf
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author Mohamed, Shaheera
Khalid, Haniza
author_facet Mohamed, Shaheera
Khalid, Haniza
author_sort Mohamed, Shaheera
building IIUM Repository
collection Online Access
description In an increasingly globalised world, agricultural trade and food security inevitably goes hand in hand. On paper, the idea of free agricultural trade continues to be a contentious one as opinions remain divided whether it can lead to greater access and variability of food to a larger number of people or whether it ends up exacerbating hunger and environmental degradation in the developing world by reinforcing pre-existing inequities in the global trading system. In practice, countries tend to intervene in food trade to protect domestic producers from volatilities in international markets, as most obviously seen in 2007-2008. Empirical evidence is mixed regarding the impact distortionary agricultural trade policies have on food security, particularly for developing countries. This study examines the issue using long panel data from 24 developing countries from 1990-2010. The Generalised Propensity Score (GPS) method, a non-parametric matching technique with continuous treatment, is used to assess the effect of Nominal Rates of Assistance (NRA) on the four dimensions of food security; food access, food availability, food utilization and food stability. While it is found that the relationships can be statistically proven, the numbers point to a positive link between distortionary trade policies and food security levels for the majority of these countries. Nonetheless, prolonged and widespread price insulations will ultimately push up global prices, offsetting their domestic food security benefits and distract or slow down the much-needed structural improvements in the country’s agricultural sector.
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spelling iium-646012018-07-22T06:32:47Z http://irep.iium.edu.my/64601/ Relationship between distortionary agricultural trade policies and food security in developing countries: a causal analysis Mohamed, Shaheera Khalid, Haniza HA29 Theory and method of social science statistics HF1014 Balance of trade HF1701 Tariff policy HF3000 By region or country In an increasingly globalised world, agricultural trade and food security inevitably goes hand in hand. On paper, the idea of free agricultural trade continues to be a contentious one as opinions remain divided whether it can lead to greater access and variability of food to a larger number of people or whether it ends up exacerbating hunger and environmental degradation in the developing world by reinforcing pre-existing inequities in the global trading system. In practice, countries tend to intervene in food trade to protect domestic producers from volatilities in international markets, as most obviously seen in 2007-2008. Empirical evidence is mixed regarding the impact distortionary agricultural trade policies have on food security, particularly for developing countries. This study examines the issue using long panel data from 24 developing countries from 1990-2010. The Generalised Propensity Score (GPS) method, a non-parametric matching technique with continuous treatment, is used to assess the effect of Nominal Rates of Assistance (NRA) on the four dimensions of food security; food access, food availability, food utilization and food stability. While it is found that the relationships can be statistically proven, the numbers point to a positive link between distortionary trade policies and food security levels for the majority of these countries. Nonetheless, prolonged and widespread price insulations will ultimately push up global prices, offsetting their domestic food security benefits and distract or slow down the much-needed structural improvements in the country’s agricultural sector. Global Academic Excellence 2018-06 Article PeerReviewed application/pdf en http://irep.iium.edu.my/64601/1/64601_Relationship%20between%20distortionary.pdf Mohamed, Shaheera and Khalid, Haniza (2018) Relationship between distortionary agricultural trade policies and food security in developing countries: a causal analysis. International Journal of Accounting, Finance and Business, 3 (12). pp. 34-48. E-ISSN 0128-1844 http://www.ijafb.com/PDF/IJAFB-2018-12-06-04.pdf
spellingShingle HA29 Theory and method of social science statistics
HF1014 Balance of trade
HF1701 Tariff policy
HF3000 By region or country
Mohamed, Shaheera
Khalid, Haniza
Relationship between distortionary agricultural trade policies and food security in developing countries: a causal analysis
title Relationship between distortionary agricultural trade policies and food security in developing countries: a causal analysis
title_full Relationship between distortionary agricultural trade policies and food security in developing countries: a causal analysis
title_fullStr Relationship between distortionary agricultural trade policies and food security in developing countries: a causal analysis
title_full_unstemmed Relationship between distortionary agricultural trade policies and food security in developing countries: a causal analysis
title_short Relationship between distortionary agricultural trade policies and food security in developing countries: a causal analysis
title_sort relationship between distortionary agricultural trade policies and food security in developing countries: a causal analysis
topic HA29 Theory and method of social science statistics
HF1014 Balance of trade
HF1701 Tariff policy
HF3000 By region or country
url http://irep.iium.edu.my/64601/
http://irep.iium.edu.my/64601/
http://irep.iium.edu.my/64601/1/64601_Relationship%20between%20distortionary.pdf