Food 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.
Using 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.
The 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.
The 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.
