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Agricultural industry

Globalization's Positive Impact on Food Supply Adequacy in Developing Countries

Strategic Insights

— 2 min read

A new study conducted by researchers at the Mindanao State University - Iligan Institute of Technology has shed light on the impact of globalization on food supply adequacy in developing countries. Despite ongoing efforts to reduce hunger, inadequate food supply remains a significant issue in these nations. The study analyzed data from 80 developing countries from 2012 to 2021 and found that globalization has a positive and statistically significant impact on food supply adequacy.

Key Takeaways:

  • The study used panel-corrected standard error (PCSE) estimation with 800 observations and found that a gain of one point in the globalization index enhanced food supply adequacy by 1.6% on average.
  • Social globalization, political globalization, economically active age group population, and access to finance and financial products for farmers all positively influenced food supply adequacy.
  • Economic globalization, however, exhibited a detrimental and substantial effect on food supply adequacy, while agricultural total factor productivity demonstrated a positive association lacking statistical significance.
  • The study's findings suggested that globalization enhanced food supply adequacy, emphasizing the need for governments in developing countries to adopt policies fostering economic integration and invest in resilient food systems.
  • The research identified the World Risk Index (WRI) as a significant challenge to food supply adequacy, suggesting that countries should focus on reducing their WRI scores to improve food security.
  • The study's results have implications for rural development policies in developing countries, highlighting the importance of globalization in improving food supply adequacy.

Statistics:

  • The study analyzed data from 80 developing countries from 2012 to 2021.
  • The research employed panel-corrected standard error (PCSE) estimation with 800 observations.
  • A gain of one point in the globalization index enhanced food supply adequacy by 1.6% on average.
  • Economic globalization exhibited a detrimental and substantial effect on food supply adequacy, with a drop of 2.1% in food supply adequacy for every one-point increase in economic globalization.
  • Agricultural total factor productivity demonstrated a positive association lacking statistical significance, with a 1.4% increase in food supply adequacy for every one-point increase in agricultural productivity.

Sources:

  • An Analysis of the Globalization Impact on Food Supply Adequacy in Selected Developing Countries. Agraris: Journal of Agribusiness and Rural Development Research, 2025,11(1):162-180.
  • Mindanao State University - Iligan Institute of Technology. Research Data from Mindanao State University - Iligan Institute of Technology Update Understanding of Agribusiness and Rural Development (An Analysis of the Globalization Impact on Food Supply Adequacy in Selected Developing Countries). Agriculture Week. July 24, 2025; p 247.

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