Impact of Logistic Performance on Food Security: Revisiting the Trade Openness-Food Security Nexus

This study investigates the impact of logistics performance on food security using the trade openness-food security nexus. Specifically, this study uses panel data from 160 countries for 2007, 2010, 2012, 2014, 2016, and 2018. The reason for selecting these periods was the data availability of the logistic performance index (LPI) offered by the World Bank. Using the generalized method of moments, we found that trade openness and LPI have negative and positive effects on food security in the short and long term, respectively. Additionally, while LPI does not significantly affect food security in high-income countries, it has negative and positive effects on the food security of low-income countries in the short-and long-term, respectively. Our results highlight the need to create a backup policy for the short-term negative effect of trade openness and LPI on food security. Additionally, this study determines that low-income countries might consider the development of logistics to enjoy the effect of trade openness among low, middle, and high countries.