Research Article |
Corresponding author: Saira Habib ( sairahabib36@gmail.com ) © 2025 Saira Habib, Hasnain Didar.
This is an open access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Citation:
Habib S, Didar H (2025) Analyzing the Composite Effect of Corruption and Socio-Economic Variables on Food Insecurity in Pakistan: A Comprehensive Study. Population and Economics 9(1): 196-213. https://doi.org/10.3897/popecon.9.e112949
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Food insecurity affects 842 million people, or 12% of the global population, with Asia and Africa accounting for over 92% of the undernourished population. Notably, South Asia comprises 35% of this figure. In countries like Pakistan, factors such as corruption, foreign investment, remittances, education, population growth, gross domestic product (GDP), and unemployment exacerbate food insecurity. This study, based on data from the World Development Indicators (WDI) and Transparency International spanning 1995 to 2021, employs an Autoregressive Distributed Lag (ARDL) Model to examine both short- and long-term relationships between corruption and socio-economic variables. Our findings reveal that corruption, population growth, and unemployment significantly increase food insecurity. Specifically, corruption negatively impacts production and quality management, while high unemployment discourages production, and population growth strains available resources. Conversely, GDP growth is found to significantly reduce food insecurity, suggesting that economic growth can help address this issue. Additionally, education, remittances, and foreign direct investment pose potential threats to food security. For Pakistan’s long-term economic development, reducing food insecurity is essential, underscoring the need for political stability. Effective oversight of corruption, and strategic management of GDP, inflation, and remittances are vital to stabilizing food security.
food insecurity, corruption, GDP, population growth, unemployment
Food insecurity is a critical global issue with far-reaching implications for individual well-being and development. The Food and Agriculture Organization (FAO) of the United Nations defines food insecurity as “the lack of regular access to safe and nutritious food, which hampers normal growth, development, and the ability to lead active and healthy lives.” This issue affects approximately 842 million people globally, or around 12% of the world’s population. Developing countries, particularly in Asia and Africa, bear the greatest burden, accounting for over 92% of the undernourished population. South Asia alone is home to 294.7 million food-insecure individuals, comprising 35% of the global total of undernourished people
Food insecurity manifests at various levels – global, regional, national, and local, as well as within households. Its determinants vary across these levels, making it a complex, multidimensional phenomenon influenced by environmental, political, economic, and social factors. Despite an overall increase in global food production, factors such as natural disasters, economic crises, political instability, rural poverty, and corruption continue to undermine food security. Pakistan, like many other countries, faces these challenges, further exacerbated by events such as the war on terror, military operations affecting residential areas, and frequent natural disasters, including floods that destroy capital and crops and recent earthquakes. Pakistan ranks 93rd out of 104 countries on the Global Hunger Index, indicating an “extremely alarming” status. Although Pakistan’s score improved from 43.6 to 33.9 between 1990 and 2015, the issue remains persistent.
Addressing food insecurity is a crucial aspect of the United Nations’ 17 Sustainable Development Goals (SDGs), aimed at eradicating poverty and hunger by 2030. Achieving this goal requires a focus on increasing agricultural production and improving the income of smallholder farmers through optimized land use and other productive resources. In rural areas, food insecurity is closely tied to agriculture, which serves as a primary source of both nutrition and income for households. Consequently, the agricultural sector plays a pivotal role in ensuring food security and is considered the economic backbone of many nations. Scholars such as
Despite significant progress in poverty reduction in recent years, food insecurity remains a pervasive issue in Pakistan. As an agricultural country, Pakistan has struggled to ensure food security for its population. South Asia, including Pakistan and India, is recognized as one of the world’s most food-insecure regions, with 500 million people suffering from hunger (
To address these challenges, the government of Pakistan has introduced various modern and scientific agricultural methods and techniques. The agricultural sector is vital to the country’s economy, accounting for approximately 20.88% of GDP and employing 43.5% of the labor force. It is also closely interconnected with other sectors, contributing significantly to Pakistan’s overall socio-economic development. According to a report by the Government of Pakistan (
Pakistan is one of seven nations, along with China, Bangladesh, the Democratic Republic of the Congo, Indonesia, India, and Ethiopia, that together account for nearly two-thirds of the world’s undernourished population (
Like other factors in Pakistan, corruption is a pervasive and destructive force that undermines economic growth and development. Corruption is particularly pressing due to its negative impacts across various sectors, including agriculture and food security. It often leads to inefficient resource allocation and diverts resources away from public goods, such as food security programs. Corruption levels are measured through the Corruption Perceptions Index (CPI), a rating system that scores each country based on perceived corruption in government, with scores ranging from zero (high corruption) to 100 (low corruption). Transparency International, an organization dedicated to combating public-sector corruption, publishes the CPI annually.
Corruption directly impacts food availability and affordability, especially for vulnerable populations. In macroeconomic environments, food security fundamentally requires integrity in public administration and a rejection of corruption, much like economic development (
Food security plays a pivotal role in household well-being, particularly as societies evolve. Initially viewed primarily from a supply-side perspective, the concept of food security expanded in the 1980s to include demand-side challenges, focusing on individual and household access to food. Research indicates that food security is multidimensional, influenced by factors such as civil conflict, climate change, and natural disasters. This study evaluates the impact of social, political, and economic variables on national food insecurity.
Research on corruption suggests that certain societies are predatory and lack principled leaders committed to controlling corrupt officials (
Corruption negatively affects the availability, access, utilization, and stability of food security by diverting resources away from agricultural investment, leading to inadequate infrastructure and lower productivity (
The present study reveals that corruption exacerbates food insecurity by undermining governance, distorting the equitable distribution of resources, contributing to high rural poverty rates, and slowing the implementation of necessary infrastructure projects (
Mora-Rivera and Gameren (2021) analyzed the influence of remittances on food security in Mexico, finding that remittances have a positive effect on food security, especially in households with specific characteristics. Similarly,
M.
While numerous studies address food insecurity in Pakistan, few have analyzed the relationship between corruption and the economic factors that contribute to food insecurity. The impact of corruption, in conjunction with other socio-economic factors, remains underexplored in the Pakistani context. This gap presents a valuable research opportunity to investigate corruption as a significant contributor to food insecurity in the country.
This study employs the Autoregressive Distributed Lag (ARDL) bounds testing approach to analyze the relationship between food insecurity and various descriptive variables. The ARDL method effectively captures data processes, differentiates between dependent and explanatory variables, and often outperforms the Johansen and Juselius cointegration technique, particularly in small sample sizes.
Our primary goal is to understand the impact of socio-political and economic factors on food insecurity in Pakistan. Given the limitations of available data, we selected ARDL bounds testing, a method introduced by
Secondary data was obtained from the World Development Indicators (WDI) and the Corruption Perception Index (CPI) for the period from 1995 to 2021, rather than using primary data. Consequently, this paper examines food insecurity from a macroeconomic standpoint, utilizing variables gathered at a macro level rather than focusing on a specific region or state. In this study, food insecurity serves as the dependent variable, for which the Food Production Index is used as a proxy. The independent variables include foreign direct investment, current GDP, personal remittances, government expenditure on education, inflation, unemployment, population growth, and corruption. The selection of these independent variables was based on their close relationship with the dependent variable.
The prevalence of undernourishment, expressed as a percentage of the population, is employed as a proxy for food insecurity. This metric reflects the percentage of the population whose habitual food consumption is insufficient to provide the dietary energy levels required to maintain a normal, active, and healthy life. For instance, a prevalence of undernourishment below 2.5% would be indicated by a data point of 2.5.
The Autoregressive Distributed Lag (ARDL) model is an econometric tool utilized to analyze both short-term and long-term relationships between economic variables. By integrating autoregressive and distributed lag components, the ARDL model accommodates a flexible lag structure. A thorough understanding of these components and their interpretations facilitates an effective analysis of dynamic economic variables.
FIN = β0 + β1FDIt + β2GDPt + β3REMt + β4EDUt +
+ β5INFt + β6UNEt + β7POPt + β8CRPt + εt, (1)
where t – Time series; LFIN – Food Insecurity; β – Coefficient; LFDI – Foreign Direct Investment; LGDP – Gross Domestic Product; REM – Personal Remittances; EDU – Government Expenditure on Education; UNE – Unemployment; POP – Population Growth; CRP – Corruption; α – Constant; ε – Error Term; β1, β2 and β3 are the coefficient of independent Variables.
Where in the above equation
The ADF test, presented in Table
Variables | At Level | At First Difference | Integration | ||
t-Statistic | Prob. | t-Statistic | Prob. | ||
Variables | 1.76 | 0.99 | -7.003*** | 0.00 | I(1) |
LFIN | -0.56 | 0.86 | -4.36*** | 0.002 | I(1) |
CRP | -1.49 | 0.53 | -4.24*** | 0.003 | I(1) |
EDU | -2.88* | 0.06 | -5.96*** | 0.00 | I(0) |
LFDI | -2.49 | 0.13 | -5.97*** | 0.00 | I(1) |
LGDP | -1.43 | 0.55 | -10.28*** | 0.00 | I(1) |
LLAND | -1.22 | 0.65 | -4.46*** | 0.003 | I(1) |
POP | -1.45 | 0.55 | -4.74*** | 0.001 | I(1) |
REM | -0.27 | 0.92 | -4.15*** | 0.005 | I(1) |
The bounds test presented in Table
Test Statistic | Value | Signif. | I(0) | I(1) |
F-statistic | 3.91 | 10% | 1.85 | 2.85 |
K | 8 | 5% | 2.11 | 3.15 |
2.50% | 2.33 | 3.42 | ||
1% | 2.62 | 3.77 |
Variables | Value | Variables | Value |
R-squared | 0.99 | Mean dependent var | 81.89 |
Adjusted R-squared | 0.97 | S.D. dependent var | 22.15 |
S.E. of regression | 4.028 | Akaike info criterion | 5.9 |
Sum squared resid | 162.21 | Schwarz criterion | 6.67 |
Log likelihood | -60.69 | Hannan-Quinn criter. | 6.13 |
F-statistic | 49.76 | Durbin-Watson stat | 2.12 |
Prob (F-statistic) | 0 |
Variable | Coefficient | t-Statistic | Prob. |
C | -54.595 | -3.10 | 0.01 |
FINS(-1)* | -0.796 | -3.90 | 0.00 |
CORRPERCENT(-1) | 7.094 | 3.19 | 0.01 |
EDUPERCENT(-1) | 1.487 | 3.29 | 0.01 |
FDIPERCENT** | 1.013 | 3.93 | 0.00 |
GDPG** | -0.211 | -3.00 | 0.02 |
POPPERCENT(-1) | 10.699 | 3.26 | 0.01 |
REMPERCENT(-1) | 1.646 | 3.35 | 0.01 |
UNMPERCENT** | 0.230 | 3.32 | 0.01 |
D(FINS(-1)) | 0.466 | 2.43 | 0.04 |
D(CORRPERCENT) | 2.024 | 1.96 | 0.09 |
D(EDUPERCENT) | 0.734 | 3.08 | 0.02 |
D(POPPERCENT) | 4.404 | 2.68 | 0.03 |
D(REMPERCENT) | 1.112 | 3.32 | 0.01 |
CointEq(-1)* | -0.796 | -13.0027 | 0 |
In our analysis, Table
Table
Table
Corruption significantly increases food insecurity over time. Specifically, a one-unit increase in the Corruption Perception Index (CPI) is associated with an increase of 8.917 units in food insecurity. As corruption – manifested through bribery, fraud, and illegal dealings – pervades the agricultural sector, it discourages farmers from producing adequate quantities and quality of food. This leads to a decrease in the variety and nutritional value available to consumers, thereby exacerbating food insecurity and making individuals more vulnerable to hunger.
Educational expenditures, as a percentage of GDP, have a positive effect on food insecurity. Specifically, a one-unit increase in educational expenditures correlates with an increase of 1.869 units in food insecurity. Given the p-value of zero and a high t-statistic of 12.819, we can conclude that this relationship is statistically significant. Investing in higher education supports economic shifts from agriculture to industrial and service industries which causes a decrease in farmers and domestically produced food. If these changes are not accompanied by new investments in agricultural education, innovation and rural infrastructure, it could harm food security in the longer term. This observation is in contrast to M.
Similarly, foreign direct investment (LFDI) also positively affects food insecurity. A one-unit increase in LFDI results in an increase of 1.273 units in food insecurity, as indicated by the coefficient. In contrast, GDP (LGDP) has a significant negative impact on food insecurity. For every one-unit increase in LGDP, food insecurity decreases by 0.266 units, supported by a t-statistic of 13.525 and a p-value of 0, confirming statistical significance. As GDP rises, it typically drives growth across all sectors, including agriculture, which enhances the quality, quantity, and variety of food items available.
A one-unit increase in population (POP) results in a 13.447-unit increase in food insecurity, indicating a strong, statistically significant, and positive relationship. This relationship highlights a critical issue: as the population grows at a faster rate than food production and availability, more individuals face food insecurity. In contrast, the relationship between remittances (REM) and food insecurity is somewhat different. While the relationship is statistically significant and positive, indicating that food insecurity increases with rising remittances, this finding may initially seem counterintuitive. As affordability improves due to remittances, households may have greater access to food, including higher-quality options. However, it is essential to recognize that increased affordability alone does not guarantee food consumption; availability remains a crucial factor. If food production is compromised or if there are issues with quality control, households may not be able to access the required and nutritious food. This situation underscores the detrimental role of corruption, as it discourages farmers from meeting production requirements and allows bribery to impede food quality during processing.
Food security is significantly and positively correlated with unemployment (UNE). Specifically, a one-unit increase in unemployment leads to a 0.289-unit increase in food insecurity. This relationship underscores the critical role of unemployment as a precursor to economic downturns, which can exacerbate food insecurity. As unemployment rises, households may experience reduced income and purchasing power, making it more difficult to access sufficient and nutritious food. In the regression model, the intercept, represented by the constant term (C), is -68.619. This negative coefficient indicates that, when all independent variables are set to zero, food insecurity reaches a baseline level of -68.619, suggesting a potentially severe level of insecurity without the influence of the independent variables. Over the long term, food insecurity is significantly affected by each of the model’s independent variables: Corruption (CRP), Educational Expenditures (EDU), Foreign Direct Investment (LFDI), Gross Domestic Product (LGDP), Population Growth (POP), Remittances (REM), and Unemployment (UNE). While most of these variables show a beneficial impact on food security, LGDP has an adverse effect. The significance levels, with p-values at or near zero, provide robust evidence that these variables significantly influence food insecurity.
According to
This research paper investigates the impact of various macro-level variables on food insecurity in Pakistan, a pressing issue with significant implications for the nation’s social and economic development. Utilizing the Autoregressive Distributed Lag (ARDL) approach – an established and robust econometric methodology – the study analyzes how several independent variables influence food insecurity. These variables include foreign direct investment (FDI), gross domestic product (GDP), remittances (REM), education spending (EDU), inflation (INF), unemployment (UNE), population growth (POP), and corruption (CRP). By distinguishing between short-term and long-term effects, the study provides valuable insights into the complex relationships among these macroeconomic factors and food insecurity in Pakistan.
The findings particularly highlight the roles of population growth and foreign direct investment in exacerbating food insecurity. Notably, the results indicate that population growth positively correlates with food insecurity, underscoring the challenges posed by rapid demographic expansion. As the second most populous nation in South Asia, Pakistan is on track to become the fourth most populous country globally, which presents significant challenges in ensuring adequate food availability for its growing population. This finding emphasizes the urgent need for policies focused on job creation, income generation, and equitable resource distribution to effectively harness the potential demographic dividend associated with population growth.
Moreover, foreign direct investment (FDI) is found to have a positive correlation with food insecurity, indicating that an increase in FDI may lead to a decline in the agricultural and food sectors while fostering growth in industrial and technical sectors. This finding aligns with previous research that highlights the benefits of FDI for host countries, particularly in terms of job creation, technology transfer, knowledge sharing, and overall economic growth. However, it also underscores the necessity for policies that ensure FDI reaches the most vulnerable segments of the population to effectively address food insecurity.
Another significant finding is that gross domestic product (GDP) exerts a notable negative impact on food insecurity. This confirms the conventional belief that economic growth tends to reduce hunger, highlighting the importance of exploring the complexities of economic development and its relationship with food security. While economic growth is often viewed as a key driver of poverty alleviation and improvements in living standards, this study emphasizes the need for nuanced understanding of how this relationship operates.
The study also reveals adverse effects of corruption, inflation, unemployment, and education spending on food insecurity in Pakistan. Specifically, corruption has a significant positive impact on food insecurity, as it infiltrates the food supply chain, disrupts resource allocation, distorts market mechanisms, and raises transaction costs. These factors ultimately lead to decreased agricultural productivity, limited access to resources for farmers, and disrupted distribution channels. This underscores the critical importance of addressing corruption as a fundamental component of any strategy aimed at alleviating food insecurity in Pakistan.
Corruption is widespread within Pakistan’s governmental and economic systems, manifesting in more insidious forms such as bribery. Citizens frequently resort to paying bribes for basic commodities, highlighting systemic issues within the country. Although organizations like the Truth-Seeking Global Organization play a crucial role in exposing corruption, powerful individuals in Pakistan often evade accountability, perpetuating injustice and hindering progress. To effectively combat corruption, it is essential to prioritize information transparency, enhance jurisdiction, and hold public officials accountable. However, genuine political will is necessary for meaningful action, which has been lacking despite previous commitments and efforts. Establishing a comprehensive framework for addressing corruption, particularly concerning foreign banks, could be achieved by aligning domestic laws with international treaties such as the United Nations Convention Against Corruption (UNCAC).
Additionally, the study underscores the positive relationship between unemployment and food insecurity. The loss of employment and stable income significantly undermines individuals’ ability to afford a sufficient and nutritious diet. This often results in reduced food quality, limited choices, and inadequate access to essential nutrients, especially among the unemployed and their families. Prolonged unemployment exacerbates food insecurity, increasing vulnerability among affected populations.
Furthermore, the study reveals an unexpected positive relationship between education spending and food insecurity. The calculation results indicate that spending on education, as a percentage of GDP, has a negative impact on food security. This is due to the fact that the education of the population contributes to technological progress and structural shifts towards industrial sectors, as a result of which the agricultural sector is stagnating.
In the case of Pakistan, government spending on education primarily contributes to a relatively skilled labor force that tends to prefer employment in the manufacturing and service sectors over agriculture. Agriculture in Pakistan is often perceived as a low-skilled profession, making it less attractive to educated individuals. Additionally, most of the education budget is allocated to traditional degree programs rather than research-oriented education, limiting innovation in agricultural practices.
Our findings contrast with those of M.
Furthermore, while the 52nd FAO Committee on Food Security (2024) highlighted the positive impact of education on GDP and the agricultural sector in general, this trend does not necessarily hold in Pakistan. Empirical data from the Bureau of Statistics, Pakistan shows a decline in agricultural production and its share in GDP over time, indicating a different dynamic at play.
To effectively address food insecurity in Pakistan, comprehensive strategies and interventions are essential. This requires coordinated efforts from the government, civil society, and international organizations to tackle the root causes of food insecurity, including structural challenges, socio-economic disparities, and governance issues. Investing in agricultural infrastructure, research, and technology is particularly crucial for enhancing productivity and ensuring food availability.
Additionally, addressing food insecurity necessitates targeted policies aimed at improving access to education, healthcare, and employment opportunities – especially in rural areas where a significant portion of the population relies on agriculture. A multi-faceted approach is essential to empower individuals and communities, breaking the cycle of poverty and food insecurity while promoting sustainable and inclusive development.
Saira Habib – assistant professor at Department of Economics, Comsats University Islamabad, Islamabad, 45550, Pakistan. Email: saira.habib@comsats.edu.pk
Hasnain Didar – student, Department of Economics, Comsats University Islamabad, Islamabad, 45550, Pakistan. Email: hasnain.shah.9674@gmail.com