The Foundation of Food Security: Agricultural Production and Credit Shape Asia^s Progress Towards Zero Hunger
Linda Rosalina (a*), Wisnu Wibowo (a), Balqis Salma Amelia (a)

Faculty of Economics and Business, Airlangga University, Jl. Airlangga No.4, Surabaya 60286, Indonesia
*linda.rosalina-2023[at]feb.unair.ac.id

Abstract

The agricultural sector constitutes a primary economic pillar in numerous Asian nations. Nevertheless, food insecurity remains a substantial challenge across this region. The advancement of the agricultural sector is frequently impeded by various constraints, including restricted access to capital. This research aims to analyze the impact of agricultural production and agricultural credit on food security, quantified by the 2nd Sustainable Development Goal (SDG 2) score (Zero Hunger), across 23 Asian countries, utilizing panel data spanning the period from 2000 to 2023. To investigate long-term effects and account for potential cross-country heterogeneity, this study employs the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) panel data methodologies. The findings of this research indicate that agricultural sector production and agricultural credit exert a positive and statistically significant influence on SDG 2 within the Asian country group. Consequently, the implementation of policies prioritizing the enhancement of sustainable agricultural production and the expansion of inclusive credit access for the agricultural sector is crucial for accelerating the attainment of the Zero Hunger target in Asia.

Keywords: agricultural production, agricultural credit, zero hunger

Topic: Development economics