Evidence from FDI moderating the relationship between Environmental degradation and food security

Kais Mtar, Walid Belazreg, Aymen Smondel () and Souad Bannour
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Aymen Smondel: UniCA - Université Côte d'Azur, GRM - Groupe de Recherche en Management - EA 4711 - UNS - Université Nice Sophia Antipolis (1965 - 2019) - UniCA - Université Côte d'Azur

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Abstract: As environmental degradation continues to pose significant challenges, Foreign Direct Investment (FDI) has emerged as a potential tool for safeguarding food and nutrition security. Over the past decade, research examining the interplay between food security, environmental degradation, and FDI has gained increasing attention. This study explores how FDI moderates the relationship between food and nutrition security and environmental degradation. The analysis is based on data from 44 developing countries spanning from 2002 to 2020. The results show that: (i) CO₂ emissions have a consistently negative effect on food and nutrition security in both models; (ii) FDI has a consistently positive effect on these dimensions; (iii) FDI's moderating role significantly improves food and nutrition security by reducing the negative impacts of CO₂ emissions and bolstering food systems. Therefore, a strategic allocation of FDI can be a crucial policy tool to mitigate the detrimental effects of CO₂ emissions on food and nutrition security.

Keywords: developing countries.; System-GMM; FDI; environmental degradation; Food security (search for similar items in EconPapers)
Date: 2025-06-26
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Published in Standards, Behaviors & Sustainability Challenges (SBSC 2025), Université Côte d'Azur, Jun 2025, Nice, France

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