EFFECT OF AGRICULTURAL INVESTMENT ON FOOD SECURITY IN SUB-SAHARAN AFRICA: WHAT ROLE DOES INSTITUTION PLAY?

Abstract

This study aims to evaluate the effect of agricultural investment and institution on food security in 24 Sub-Saharan African (SSA) countries between 2001 and 2016. Countries are chosen based on data availability. The research employs a two-step system-GMM estimation technique to achieve the study objectives. Findings show that agricultural investment improves food security in the selected SSA countries, whereas internal and external conflicts as measures of governance positively influence food security. The study concludes that investment in agriculture and institutional quality have significant roles to play in ensuring food security in the selected countries. Thus, the study suggests further investment in the agricultural sector to boost agricultural food production, thereby ensuring food security in the selected African countries. Also, internal, and external conflict should be discouraged to ensure food security. Hence, brokering peace among citizens is very crucial to enable improved agricultural productivity, since sustainable peace would promote investment in agriculture, thereby, reducing over-reliance on food importation.

Keywords

• agricultural investment
• food security
• institution
• sub-saharan africa
• system gmm