The impact of China’s OFDI on host countries’ food security: empirical study based on panel data from 46 countries

Qian Liu, Jing Li, Jiahe Wang and Zhihua Chen

China Agricultural Economic Review, 2025, vol. 17, issue 4, 607-624

Abstract: PurposeFood security, of utmost global significance, is indelibly intertwined with national stability and citizen living quality. China has been resolutely committed to augmenting food security within host countries through outward foreign direct investment (OFDI). This paper aims to examine the impact of China’s OFDI on the food security of host countries.Design/methodology/approachUsing panel data from 46 countries spanning from 2010 to 2021, the study establishes a food security index using the entropy method, encompassing three dimensions: food supply stability, food availability and the food production foundation, followed by an empirical analysis of the effect of China’s OFDI on the index.FindingsThe findings indicate that, for every one-unit increase in China’s OFDI, the food security index of the host country increases by 0.0078 units significantly. This impact is modulated by the degree of corruption prevailing in the host countries. Those countries with relatively lower levels of corruption are capable of optimizing the efficiency of foreign investment utilization, thereby magnifying the salutary impact of foreign investment on food security. Additionally, the trade scale and agricultural infrastructure of the host country are identified as the two major channels through which China’s OFDI promotes food security.Originality/valueThe paper concludes with some policy recommendations aimed at enhancing food security by enhancing the host country’s food security governance capacity and strengthening China’s OFDI and foreign cooperation.

Keywords: Outward foreign direct investment; Food security; Corruption; Food security index; China (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:caerpp:caer-10-2024-0339

DOI: 10.1108/CAER-10-2024-0339

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