Food security and optimal government intervention level in agriculture (comparative analysis)

Fuad Hasanzade, Vafa A. Huseynova, Shahla A. Huseynova, Ofelya A. Nasirova, Saida J. Babayeva, Leyla Z. Aliyeva

Abstract: The article analyses the impact of government intervention in the agricultural sector on food security comparatively. The authors conclude that, since 1992, the aggregate volume of agricultural products in these countries has dropped dramatically since the government intervention in agriculture has diminished in most republics of the former Soviet Union. On the other hand, the role of agriculture in the country’s economy is decreasing as the GDP per capita increases in the majority of countries. On the contrary, the share of agriculture in GDP is high in countries with relatively small GDP per capita. The authors conclude that the choice of the “optimal place” of the agricultural sector in the economy of the country is important. A method for measuring government intervention in the agricultural sector is proposed. Based on this method, the degree of government intervention in the agricultural sector in some countries is evaluated comparatively. Assessments show that government intervention in the agricultural sector, one of the most liberal sectors of the economy, is widespread in both developed and developing economies. The contact line between the food security index and liberalization of foreign trade, GDP per capita and the level of agricultural development and the level of government intervention in the agricultural sector were estimated by the regression method. The authors came to the conclusion that the level of liberalization of foreign trade and economic growth play a special role in ensuring food security. If the country does not have a competitive advantage in the agricultural sector, there is no need to give strategic priority to this field and to increase government intervention, and liberalization of foreign trade is more appropriate for food security.

Keywords: agricultural sector; food security; food security index; foreign trade; GDP; government intervention; sub-index

Date published: 2019-12-10