Global Patterns of Agricultural Investment and Food Security: Evidence from the fDi Markets Database.

The number of hungry people is on the rise and more efforts are needed to improve the global food security status. The Food and Agriculture Organization (FAO) proposes more investment in the agricultural sector to boost production and alleviate hunger. However, there are fewer papers that distinguish enterprises investment from public investment. In this case, we take advantage of detailed investment data in the fDi Markets database to explore the global patterns of agricultural investment. In particular, we identify the top destination countries based on aggregate and sub-sectoral agricultural investment data. Then we investigate the relationship between agricultural investment and food security, which is measured by per capita protein intake. Finally, we propose some suggestions from the investment motivation perspective to help food-insecure countries to attract overseas investment. We find that developed countries are the primary sources of global agricultural investment and these sources have been becoming more diverse in the past decade. It implies the trend towards a more inclusive investment environment worldwide. However, the global distribution of agricultural investment is uneven as food-insecure countries only receive 20% of the global agricultural investment. The top three destination countries, USA, China, and Russia, have a relatively high food security level. In contrast, countries suffering from food insecurity receive fewer investment projects, and most of which are on a small scale. Given the limited socio-economic development status in food-insecure countries, it is essential for all levels of society to help them and contribute to ending hunger.