Enhancing food security in developing countries: The role of financial development and green economic growth

Abstract

This study examines the relationship between Food Security, Green Economic Growth, and Financial Development in 116 developing countries over the period from 2013 to 2021. Using the Generalized Method of Moments (GMM) estimator, it provides steady evidence of the critical role that Financial Development and Green Economic Growth play in enhancing Food Security. Financial development facilitates access to financial resources, enabling investments in technologies that reduce post-harvest losses, improve food distribution, and support climate-resilient agricultural methods. Similarly, Green Economic Growth promotes resource efficiency and sustainable farming techniques, contributing to stable and reliable food supplies while alleviating the environmental impact of agriculture. The results show significant regional differences, with clear trends showing up in Asia-Pacific, Latin America, and Africa. Regions with stronger financial infrastructures tend to exhibit greater resilience to food insecurity, largely due to targeted investments and efficient resource allocation. Likewise, countries that prioritize green economic policies often experience higher agricultural productivity and reduced dependence on imports, fostering long-term food stability. These regional dynamics underscore the importance of designing policies tailored to specific socioeconomic and environmental contexts. By addressing gaps in the existing literature, this study provides valuable insights into how Financial Development and Green Economic Growth can work together to tackle Food Security challenges in developing nations. The findings offer practical strategies for promoting equitable and sustainable improvements in global food systems, providing crucial guidance for policymakers seeking to balance economic growth with sustainable agricultural development