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

Zouhaier Aloui () and Samir Maktouf ()
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Zouhaier Aloui: University of Sousse
Samir Maktouf: University of Tunis El Manar

Comparative Economic Studies, 2024, vol. 66, issue 2, No 4, 289-328

Abstract: 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).

Keywords: Foreign inflows; Violent conflict; Prevalence of hunger; Nutrition security; Sub-regions; Simultaneous equations (search for similar items in EconPapers)
JEL-codes: F2 I3 O1 R1 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1057/s41294-023-00222-w

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