Assessment of the importance of climate, land, and soil on the global supply for agricultural products and global food security: Evidence from Madagascar

Sub-Saharan Africa is home to 63.00% of the global food-insecure people (IPC/CH Phase 3 or above) and endowed with more than 50.00% of uncultivated land. The production environment in the region is subject to numerous constraints imposed by climate, physical infrastructure, and human activities. This study highlights the importance of countries’ natural endowment and crop-specific requirements, namely soil and climate characteristics, on agricultural trade and food security. To analyze the global supply of crops, we based our research on the comparative advantage theory with the factor endowment approach. We found that the climate in the tropical region lowered the soil quality and the agricultural productivity in the region. Compared to most developing Asian countries, least developed countries from Africa, including Madagascar, struggle with soil management which lowers their comparative advantage in the agricultural sector. We also found that the crops’ requirements give a comparative advantage to well-endowed countries. This research exposed that the climate and soil combined, along with the geography variables are important for the international trade pattern. It also brings light to the importance of international trade in the achievement of global food security. Our findings suggested that foreign direct investment (FDI) can be used to boost the global agricultural sector and improve global food security. For Madagascar in particular, we found that FDI could help the country sustain the global supply of spices, specifically vanilla, cloves, and cocoa.