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The Impact of Foreign Direct Investment and Political Stability on Food Security: Evidence from Sub-Saharan African Countries

Author

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  • Zouhaier Aloui

    (University of Sousse)

  • Samir Maktouf

    (University of Tunis El Manar)

Abstract

This paper investigates the impact of Foreign Direct Investment (FDI) and political stability on food security (SDGs2) in Sub-Saharan African countries using simultaneous equation model and GMM method over the period 1996–2020. The empirical results show that FDI positively affects food security in Sub-Saharan African countries, East Africa (EAC), West Africa (WAMZ) and WAEMU. The results show that political stability negatively affects food security in Sub-Saharan African countries, CEMAC, ECA and WAEMU, while having a positive impact on food security in SACU and WAMZ. Other important results show that the interaction of FDI and political stability has a positive and significant impact on food security in Sub-Saharan African countries and SACU, while negative impact in EAC and WAEMU. This implies that political stability plays a crucial role on how FDI affects food security. This result indicates that improving food security in Sub-Saharan African countries depends on increasing the inflows of foreign direct investment and improving political stability. The policy implications of this study is that governments in Sub-Saharan African countries must give great importance to improving political stability, thus, increasing FDI inflows and enhancing the level of food security (SDGs2).

Suggested Citation

  • Zouhaier Aloui & Samir Maktouf, 2024. "The Impact of Foreign Direct Investment and Political Stability on Food Security: Evidence from Sub-Saharan African Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 66(2), pages 289-328, June.
    • Handle: RePEc:pal:compes:v:66:y:2024:i:2:d:10.1057_s41294-023-00222-w
    DOI: 10.1057/s41294-023-00222-w
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    More about this item

    Keywords

    Foreign inflows; Violent conflict; Prevalence of hunger; Nutrition security; Sub-regions; Simultaneous equations;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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