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Determinants of food security in Malaysia

Noor Thoyibbah, Abdul Wahab (2014) Determinants of food security in Malaysia. Masters thesis, Universiti Utara Malaysia.

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Abstract

Food security issue is getting more attention by world today. Although, Malaysia is a middle income country able to produce her own food, but there is still lack of food supply for domestic needs. She still has to import some food commodities including rice (staple food) to fulfill the demand of food. The increasing deficit between domestic demand and local production is expected to continue and this cause threat to food security to the country. With these trends lurking, understanding the determinants of food security is important because it will help the policy makers keep abreast of the main variables for food security in Malaysia. This paper thus analyse the factors that affect the food security model in Malaysia during the period of 1982-2011. Based on theoretical principles and research experience, the analysis in this paper include food production index as food security proxy while the other variables include food prices, Malaysian population, CO2 emission and foreign workers as important determinants of food security. The assessment of the impact of these factors is achieved using the Johansen Juselius Cointegration Test for long run model and Vector Error Correction Model approach (VECM) to check the adjustments of the cointegrated variables towards their equilibrium values. These series are defined in logarithm. Preliminary investigation revealed that the series were found to be I (1) process at initial level while the series become I (0) after first differences. The trace statistics test shows that the series on the food prices, Malaysian population, CO2 emissions and foreign workers are co-integrated each other. The results from Johansen test shows that all the variables are cointegrated each other and important determinants of food security in the long run. While, results from VECM shows only foreign worker is important determinant of food security in the short run. This model is a useful tool that can guide the policy makers to develop more effective policies and strategies to improve food security level in the country. It could also provide a more quantitative means of assessing food security, and in particular to pinpoint specific variables that explain the highest effect to food security at the national level.

Item Type: Thesis (Masters)
Uncontrolled Keywords: Determinants, Econometric analysis, Food security, VECM
Subjects: H Social Sciences > HD Industries. Land use. Labor.
Divisions: Othman Yeop Abdullah Graduate School of Business
Depositing User: Mr. Badrulsaman Hamid
Date Deposited: 17 Jun 2015 04:38
Last Modified: 17 Apr 2016 04:19
URI: http://etd.uum.edu.my/id/eprint/4645

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