| Literature DB >> 33934264 |
Abstract
The ongoing Covid19 pandemic is producing dramatic effects on the economic and social life of many countries, which in turn may further undermine people's health and well-being. This note focuses on some potential effects on the achievement of the UN Sustainable Development Goal 2 'Zero Hunger' (Target 2.1) and, specifically, on the prevalence of undernourishment. After discussing the main changes induced by the Covid19 outbreak in various dimensions of food security, as identified by the preliminary literature on the topic, the note presents the dynamic estimates (GMM) of the recent determinants of food security, measured through the prevalence of undernourishment (SDG indicator 2.1.1), using a sample of 84 developing countries observed over the period 2000-2017. Since the rate of economic growth turns out to be a relevant determinant, the analysis quantifies the potential consequences that the economic downturn caused by the pandemic may have on the short- and long-run achievements of SDG 2 if proper counterbalancing measures will not be implemented. Such consequences in the short run would consist of millions of new undernourished people, while in the long run the progress made towards the 'Zero Hunger' goal are at risk of being completely reversed in the majority of countries. The note concludes by suggesting some directions for future research.Entities:
Keywords: Covid19 pandemic; Economic growth; Food security; Hunger
Mesh:
Year: 2021 PMID: 33934264 PMCID: PMC8088754 DOI: 10.1007/s10198-021-01311-2
Source DB: PubMed Journal: Eur J Health Econ ISSN: 1618-7598
Fig. 1Prevalence of undernourishment (2000–2017)
The macro-determinants of undernourishment (alternative model specifications)
| SYS-GMM (model 1) | SYS-GMM (model 2) | One-step SYS-GMM (model 1) | One-step SYS-GMM (model 2) | |
|---|---|---|---|---|
| Undernourishment (t-1) | 0.9804*** (0.0283) | 0.9908*** (0.0000) | 0.9840*** (0.0285) | 0.9977*** (0.0318) |
| GDP per capita | 0.0001 (0.0000) | 0.0001 (0.0000) | 0.0001 (0.0000) | 0.0001 (0.0000) |
| GDP growth | − 0.0871*** (0.0272) | − 0.0567** (0.0310) | − 0.1038*** (0.0326) | − 0.0702** (0283) |
| Gini | 0.0938* (0.0434) | 0.0521* (0 − 0372) | 0.0964** (0.0379) | 0.0554* (0.0306) |
| Inflation | 0.0347* (0.0170) | 0.0396* (0.0207) | 0.0381* (0.0180) | 0.0435*** (0.0164) |
| Agricultural productivity | − 0.0003* (0.0001) | − 0.0001 (0.0002) | − 0.0002* (0.0001) | − 0.0001 (0.0001) |
| Food trade openness | − 0.0002 (0.0001) | − 0.0001 (0.0001) | − 0.0002 (0.0001) | − 0.0001 (0.0002) |
| Rural population | − 0.0131 (0.0200) | − 0.0110 (0.0188) | ||
| Population growth | 0.4372*** (0.1396) | 0.4665*** (0.1627) | ||
| Arable land | 0.0254 (0.8557) | 0.0312 (0.0227) | ||
| Natural disasters | 0.0241 (0.0240) | 0.0146 (0.0297) | ||
| Conflicts | 0.1867 (0.1942) | 0.1519 (0.1501) | ||
| Constant | − 4.3583* (2.2932) | − 3.2926* (1.5157) | − 4.6077* (2.0185) | − 3.8856** (1.5858) |
| Observations | 851 | 818 | 851 | 818 |
| Number of countries | 84 | 78 | 84 | 78 |
| Number of instruments | 80 | 73 | 80 | 73 |
| Estimation period | 2000–2017 | 2000–2017 | 2000–2017 | 2000–2017 |
| AR2 test ( | 0.102 | 0.151 | 0.101 | 0.080 |
| Hansen statistics ( | 0.196 | 0.205 | 0.196 | 0.205 |
| Diff-Hansen ( | 0.132 | 0.379 | 0.132 | 0.379 |
***p < 0.01, **p < 0.05, *p < 0.10
Robust standard errors in parenthesis. Time dummies are included in all the regressions (not reported) to prevent cross-individual contemporaneous correlation [56]. The AR2 test (p-value) refers to the Arellano and Bond [2] test of autocorrelation of order 2,the Hansen [39] statistics test the validity of overidentifying restrictions, the Diff-Hansen test verifies the exogeneity of instruments in the level equation (null hypothesis = exogeneity). A version of the system GMM that collapses the GMM-style instruments is employed [56, 57]. Moreover, where necessary, the number of instruments is further reduced by dropping deeper lags if the instruments count exceeds the number of countries, so that the number of instruments is always kept below the number of units
The effect of economic growth on the prevalence of undernourishment (alternative model specifications)
| SYS-GMM (linear) | One-step SYS-GMM (linear) | SYS-GMM (log) | One-step SYS-GMM (log) | |
|---|---|---|---|---|
| Undernourishment ( | 0.8908*** (0.0309) | 0.8308*** (0.0478) | 0.9113*** (0.0204) | 0.9134*** (0.0224) |
| GDP growth | − 0.0811* (0.0426) | − 0.1169** (0.0554) | − 3.4735*** (0.8871) | − 3.8402*** (0.8746) |
| Constant | 1.3316* (0.6901) | 2.6691*** (0.9401) | 11.9216*** (2.7838) | 13.2061*** (2.7859) |
| Observations | 851 | 851 | 851 | 851 |
| Number of countries | 84 | 84 | 84 | 84 |
| Number of instruments | 52 | 52 | 52 | 52 |
| Estimation period | 2000–17 | 2000–17 | 2000–17 | 2000–17 |
| AR2 test ( | 0.630 | 0.430 | 0.659 | 0.695 |
| Hansen statistics ( | 0.221 | 0.221 | 0.067 | 0.084 |
| Diff-Hansen ( | 0.369 | 0.369 | 0.327 | 0.327 |
***p < 0.01, **p < 0.05, *p < 0.10
Robust standard errors in parenthesis. In columns 3 and 4 economic growth is log-transformed. Time dummies are included in all the regressions (not reported) to prevent cross-individual contemporaneous correlation [56]. A version of the system GMM that collapses the GMM-style instruments is employed [56,57]
Robustness analysis for the SYS-GMM models
| Row | Change | Coefficients for GDP growth | Robust se | Observations | Countries | Number of instruments | AR2 test ( | Hansen statistics ( | Diff-Hansen ( |
|---|---|---|---|---|---|---|---|---|---|
|
| |||||||||
| (1) | Without outliers | -0.1122*** | 0.0318 | 842 | 84 | 80 | 0.08 | 0.30 | 0.17 |
| (2) | Without extremes for dep. variable | −0.1176*** | 0.0229 | 779 | 74 | 73 | 0.10 | 0.37 | 0.46 |
| (3) | Without extremes for GDP growth | −0.1107*** | 0.0298 | 769 | 74 | 73 | 0.08 | 0.47 | 0.52 |
| (4) | Without Asia | −0.0855** | 0.0349 | 648 | 67 | 66 | 0.08 | 0.36 | 0.07 |
| (5) | Without SSA | −0.1292*** | 0.0299 | 644 | 56 | 52 | 0.06 | 0.19 | 0.36 |
| (6) | Without LAC | −0.0756* | 0.0439 | 638 | 70 | 66 | 0.85 | 0.22 | 0.23 |
| (7) | Without MENA | −0.0807** | 0.0373 | 785 | 76 | 66 | 0.07 | 0.17 | 0.12 |
|
| |||||||||
| (1) | Without outliers | −0.1307** | 0.0668 | 842 | 84 | 52 | 0.53 | 0.28 | 0.13 |
| (2) | Without extremes for dep. variable | −0.1142** | 0.0474 | 779 | 74 | 52 | 0.43 | 0.18 | 0.68 |
| (3) | Without extremes for GDP growth | −0.0971 | 0.0729 | 769 | 74 | 52 | 0.90 | 0.23 | 0.67 |
| (4) | Without Asia | −0.0755** | 0.0372 | 648 | 67 | 52 | 0.94 | 0.18 | 0.59 |
| (5) | Without SSA | −0.1336*** | 0.0306 | 644 | 56 | 52 | 0.56 | 0.20 | 0.48 |
| (6) | Without LAC | −0.0822 | 0.0492 | 638 | 70 | 52 | 0.32 | 0.76 | 0.58 |
| (7) | Without MENA | −0.0922** | 0.0479 | 785 | 76 | 52 | 0.92 | 0.21 | 0.23 |
| (8) | Net food-importers | −0.1090*** | 0.0415 | 507 | 65 | 52 | 0.24 | 0.65 | 0.86 |
| (9) | Net food-exporters | −0.0552 | 0.0407 | 344 | 36 | 33 | 0.41 | 0.48 | 0.32 |
|
| |||||||||
| (1) | Without outliers | −5.4299*** | 1.1682 | 842 | 84 | 52 | 0.84 | 0.23 | 0.04 |
| (2) | Without extremes for dep. variable | −3.5927*** | 0.8943 | 779 | 74 | 52 | 0.47 | 0.16 | 0.58 |
| (3) | Without extremes for GDP growth | −4.5706*** | 1.1030 | 769 | 74 | 52 | 0.32 | 0.17 | 0.15 |
| (4) | Without Asia | −4.3243*** | 0.8653 | 648 | 67 | 52 | 0.98 | 0.14 | 0.07 |
| (5) | Without SSA | −3.2671*** | 0.6799 | 644 | 56 | 52 | 0.66 | 0.16 | 0.72 |
| (6) | Without LAC | −3.2742*** | 0.8761 | 638 | 70 | 52 | 0.29 | 0.18 | 0.41 |
| (7) | Without MENA | −3.8252*** | 0.9370 | 785 | 76 | 52 | 0.49 | 0.08 | 0.14 |
| (8) | Net food-importers | −3.1420*** | 0.6975 | 507 | 65 | 52 | 0.54 | 0.19 | 0.22 |
| (9) | Net food-exporters | −3.0416** | 1.4623 | 344 | 36 | 35 | 0.55 | 0.05 | 0.35 |
***p < 0.01, **p < 0.02, *p < 0.05
Time dummies are included in all the regressions. A version of the system GMM that collapses the GMM-style instruments is employed [56,57]. Moreover, where necessary, the number of instruments is further reduced by dropping deeper lags if the instruments count exceeds the number of countries, so that the number of instruments is always kept below the number of units. Full model refers to Model 1 in Table 4, which has the advantage of containing the number of regressors
Impact of the Covid19 pandemic on economic growth and on the prevalence of undernourishment (out-of-sample predictions)
| No. of countries | Total population (million) | Average loss in economic growth (percentage points) | Average change in PoU | Number of new undernourished (million) | |||
|---|---|---|---|---|---|---|---|
| Linear | Non-linear | Linear | Non-linear | ||||
| Original sample | 84 | 5804.7 | −8.52 | 0.69 | 1.90 | 41.4 | 97.5 |
| World-developing | 128 | 6418.3 | −8.43 | 0.68 | 1.76 | 44.7 | 105.0 |
| World—total, of which: | 186 | 7616.2 | −8.78 | 0.71 | 1.90 | 52.3 | 123.7 |
| Sub-Saharan Africa | 46 | 1115.6 | −6.95 | 0.56 | 1.34 | 5.54 | 12.6 |
| East Asia and Pacific | 30 | 2300.2 | −6.41 | 0.52 | 1.46 | 9.8 | 19.4 |
| South Asia | 8 | 1871.3 | −10.25 | 0.83 | 2.60 | 21.2 | 52.1 |
| LAC | 33 | 611.8 | −13.14 | 1.07 | 3.10 | 4.8 | 12.6 |
| MENA | 18 | 433.4 | −9.65 | 0.78 | 2.31 | 2.6 | 7.0 |
| Europe and Central Asia | 49 | 915.9 | −8.49 | 0.69 | 1.64 | 6.4 | 15.5 |
| North America | 2 | 368.0 | −7.71 | 0.63 | 1.45 | 2.0 | 4.4 |
The average loss in economic growth is calculated as the mean of the difference between the post- (October 2020) and pre- (October 2019) Covid19 IMF projections on the growth of GDP per capita (WEO) within each regional or income group. The average change in the prevalence of undernourishment refers to the mean change by region or income group. Total population refers to the estimates for 2020 (WB)
Fig. 2Countries at risk of regressing to the 2000-level in the prevalence of undernourishment (below the 45° line). The projected loss in economic growth is calculated as the difference between the post- (October 2020) and pre- (October 2019) Covid19 IMF projections on the growth of GDP per capita for 2020 (WEO). The growth loss that is necessary for leading the prevalence of undernourishment back to its 2000-level is estimated by dividing the positive changes in the prevalence of undernourishment recorded between 2000 and 2017 by the estimated long-run coefficient for economic growth (linear scenario)
List of countries
| Albania | Croatia | Lao PDR | Peru |
| Algeria | Cyprus | Latvia | Philippines |
| Angola | Ecuador | Lebanon | Russia |
| Armenia | Egypt | Madagascar | Senegal |
| Azerbaijan | El Salvador | Malawi | Serbia |
| Bangladesh | Estonia | Malaysia | Sierra Leone |
| Belarus | Ethiopia | Maldives | Slovak Rep |
| Benin | Fiji | Mali | South Africa |
| Bolivia | Gambia, The | Mauritius | Sri Lanka |
| Bosnia & Herz | Ghana | Mexico | Sudan |
| Botswana | Guinea | Mongolia | Tanzania |
| Brazil | Guinea-Biss | Morocco | Thailand |
| Bulgaria | Honduras | Namibia | Timor-Leste |
| Burkina Faso | India | Nepal | Togo |
| Cameroon | Indonesia | Nicaragua | Tunisia |
| Chad | Iran | Niger | Ukraine |
| Chile | Iraq | Nigeria | Uruguay |
| China | Jordan | Macedonia | Vanuatu |
| Colombia | Kazakhstan | Pakistan | Vietnam |
| Congo, Rep | Kenya | Panama | Zambia |
| Costa Rica | Kyrgyz Rep | Paraguay | Zimbabwe |