Economic Growth And Food Security In Kenya: A Time Series Analysis Approach

Abstract

Many nations in the developing world continue to be food insecure with many people living the poverty level. This study sought to establish the effect of food security on economic growth in Kenya. Secondly, the study also sought to analyze the effects of other factors on economic growth. In order to achieve the research objectives, VECM was employed after the optimal lag determination. The cointegration test was applied to check whether the variables are cointegrated using time series data, annual observation for the period 1980-2016. This data was obtained from the World Development Indicators (WDI). Additionally, data for food insecurity was obtained from (FAO) and the Kenya National Bureau of Statistics (KNBS) databases. The Johansen cointegration confirmed that food security and economic growth were cointegrated. The first model showed that food availability affects economic growth positively and significantly while that food accessibility as the second dimension of food security affects economic growth negatively and significantly. Secondly, it was established that the two models also showed that food security significantly cause economic growth. The study recommended that since food security causes economic growth and economic growth cause food security, then proper measures should be put in place to facilitate food availability because it is economic growth.