IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v70y2024i4id432-2023-agricecon.html
   My bibliography  Save this article

Will the financialisation of agricultural products exacerbate food security risks? Empirical analysis from major grain-producing countries worldwide

Author

Listed:
  • Yujie Chen

    (Research Institute of Economics and Management, Southwest University of Finance and Economics, Chengdu, P. R. China)

  • Jiangwei Tang

    (Management Institute, Beijing Academy of Social Sciences, Beijing, P. R. China)

Abstract

Based on data from 10 countries from the Chicago Mercantile Exchange (CBOT) wheat futures market for the period from 2000 to 2021, this study examines the impact of the financialisation of agricultural products on food security and its mechanism of action. We found that the higher the degree of financialisation of agricultural products, the stronger the negative effect on food security, which is more prominent after the financial crisis in 2008, and the effect on developing countries is more obvious than that on developed countries. The test results of the mediation effect model showed that the financialisation of agricultural products affects food security by increasing the volatility of futures prices. The test results of the moderating effect model showed that the rise of the US dollar index and loose monetary policy will exacerbate the impact of the financialisation of agricultural products on food security. Still, the increase of the self-sufficiency rate of food can effectively inhibit this impact. The study's conclusions supported the government's optimising macro policies and promoting food security.

Suggested Citation

  • Yujie Chen & Jiangwei Tang, 2024. "Will the financialisation of agricultural products exacerbate food security risks? Empirical analysis from major grain-producing countries worldwide," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(4), pages 178-186.
    • Handle: RePEc:caa:jnlage:v:70:y:2024:i:4:id:432-2023-agricecon
    DOI: 10.17221/432/2023-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/432/2023-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/432/2023-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/432/2023-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:70:y:2024:i:4:id:432-2023-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.