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Has Trade Liberalization Improved Food Availability In Developing Countries? An Empirical Analysis

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  • MESFIN BEZUNEH

    (Clark Atlanta University, USA)

  • ZELEALEM YIHEYIS

    (Clark Atlanta University, USA)

Abstract

It has been over two decades since governments of many developing countries have undergone the process of structural adjustment and trade liberalization. Trade liberalization has been promoted by the World Bank, International Monetary Fund, and World Trade Organization based on the argument that openness to trade will contribute to economic growth and development and with it, a reduction in poverty and, by extension, improvement in food security. Despite the lack of consensus, such argument prevailed over those which were cautious. As a result, most developing countries took the challenge to liberalize their economies. This paper examines empirically the effect of trade liberalization on food availability in developing countries using alternative estimation methods. An econometric analysis of panel data drawn from 37 countries seems to suggest that trade liberalization exerted a negative short run effect on food availability in the sample countries. The delayed outcome is found insignificantly positive, and the sum of the two differing outcomes fails to support the view that the medium to long run effect of trade liberalization on food availability is favorable.

Suggested Citation

  • Mesfin Bezuneh & Zelealem Yiheyis, 2014. "Has Trade Liberalization Improved Food Availability In Developing Countries? An Empirical Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(1), pages 63-78, March.
    • Handle: RePEc:jed:journl:v:39:y:2014:i:1:p:63-78
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    References listed on IDEAS

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    1. Manoj Panda & A. Ganesh-Kumar, 2008. "Trade Liberalization, Poverty and Food Security in India," Trade Working Papers 22410, East Asian Bureau of Economic Research.
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    3. Ms. Xiangming Li, 2003. "Trade Liberalization and Real Exchange Rate Movement," IMF Working Papers 2003/124, International Monetary Fund.
    4. Smith, Lisa Catherine & Haddad, Lawrence, 2001. "How important is improving food availability for reducing child malnutrition in developing countries?," Agricultural Economics, Blackwell, vol. 26(3), pages 191-204, December.
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    Cited by:

    1. Bob Milward, 2015. "On the Historical, Moral and Economic Arguments for Asymmetric Trading Regimes: the case of sub-Saharan Africa," World Economic Review, World Economics Association, vol. 2015(5), pages 1-87, July.
    2. Muhammad Shahbaz & Muhammad Shafiullah & Mantu K. Mahalik, 2019. "The dynamics of financial development, globalisation, economic growth and life expectancy in sub‐Saharan Africa," Australian Economic Papers, Wiley Blackwell, vol. 58(4), pages 444-479, December.
    3. Zolfaghari, Mehdi & Jariani, Farzaneh, 2021. "Food Security in the Middle East and North Africa (MENA)," MPRA Paper 105078, University Library of Munich, Germany.
    4. Vasilii Erokhin, 2017. "Self-Sufficiency versus Security: How Trade Protectionism Challenges the Sustainability of the Food Supply in Russia," Sustainability, MDPI, vol. 9(11), pages 1-17, October.
    5. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci & Luca Salvatici, 2017. "Agricultural (Dis)Incentives and Food Security: Is There a Link?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 847-871.
    6. Mohd Alsaleh & A. S. Abdul-Rahim & A. O. Zubair, 2021. "Impacts of bioenergy sustainable growth on food security in EU28 region: an empirical analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17423-17442, December.
    7. Younghyeon Jeon & Byeong-il Ahn, 2017. "Effects of a Tariff Reduction on Grain Self-Sufficiency: Evidence from Country-Level Panel Data," Sustainability, MDPI, vol. 9(10), pages 1-14, October.
    8. Byeong-il, Ahn & Younghyeon, Jeon, 2016. "Does tariff reduction have a positive effect on the world’s grain self-sufficiency?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235578, Agricultural and Applied Economics Association.
    9. Magrini, Emiliano & Montalbano, Pierluigi & Nenci, Silvia & Salvatici, Luca, 2014. "Agricultural trade distortions during recent international price spikes: what implications for food security?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182726, European Association of Agricultural Economists.
    10. Ward, Megan & Herr, Hansjörg & Pédussel Wu, Jennifer, 2020. "South Asian Free Trade Area and food trade: Implications for regional food security," IPE Working Papers 148/2020, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    11. Robert Becker Pickson & Elliot Boateng, 2022. "Climate change: a friend or foe to food security in Africa?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4387-4412, March.
    12. Maya H. Montolalu & Mahjus Ekananda & Teguh Dartanto & Diah Widyawati & Maddaremmeng Panennungi, 2022. "The Analysis of Trade Liberalization and Nutrition Intake for Improving Food Security across Districts in Indonesia," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    13. Md. Samsul Alam & Syed Ali Raza & Muhammad Shahbaz & Qaisar Abbas, 2016. "Accounting for Contribution of Trade Openness and Foreign Direct Investment in Life Expectancy: The Long-Run and Short-Run Analysis in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(3), pages 1155-1170, December.

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    More about this item

    Keywords

    Trade Liberalization; Food Availability/Security; Dietary Energy Supply; Developing Countries;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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