The relationship between the cost of living and food security in developing countries. Evidence from Ghana

Abstract

Purpose The aim of the quantity study is to investigate the cost of living and food security nexus in Ghana. Time series secondary quarterly data from 2012Q1 to 2018Q4 were examined. Design/methodology/approach The autoregressive distributed lag (ARDL) to cointegration bound test was employed for the econometrics analysis. Time series secondary quarterly data from 2012Q1 to 2018Q4 were examined. Food security data based on the Global Food Security Index score were employed. Findings The result revealed that the variables are cointegrated in the long run. The study also revealed that the cost of living worsens food security in Ghana both in the short run and the long run. This could imply that people may not have enough money to afford adequate and nutritious food, which can lead to food insecurity. As the cost of living increases, people may have to spend more of their income on basic necessities such as housing, healthcare and transportation, leaving less money for food. This can result in people choosing cheaper and less nutritious options, or even skipping meals, which can have negative impacts on their health and well-being. Practical implications For policy implications, it is recommended that effort should be made by the Ministry of Finance Ghana, financial analysts and other economic agents to stabilize prices of goods and services in the country. Originality/value The study is among the few to have investigated the nexus between the cost of living and food security in non-Western economy using the secondary data. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2023-0309