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Lukas Kornher: The aid-nutrition link - does targeted development assistance related to food systems matter?

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In this study, we discuss and examine the relevance of food system related official development assistance (ODA) for improving food and nutrition security. We hypothesize that given the relationship between agricultural growth and poverty reduction as well as food and nutrition security, aid attributed to food systems could have a stronger and more immediate impact on food and nutrition security than overall aid. We look at the long-run effects and we apply an instrumental variable approach to address reverse causality. Our instrumentation strategy follows the related literature in estimating the supply of aid from the donors’ point of view but also uses a dummy variable for the common continental origin of donor and recipient country and the level of diplomatic representation of the donor country as novel zero-stage instruments. We find a statistically significant and economically meaningful contribution of food system related ODA to hunger and malnutrition reduction since 2000. This has important implications for donor countries, particularly those that focus on the fight against hunger in their development cooperation strategies.

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