The role of savings and credit to cope with shocks in Malawi. Considerations for nutrition

To investigate the relationship between shocks, coping strategies, and food and nutrition security, this study implements a modified two stages least squared approach using a panel dataset collected in Malawi between 2010-2017. This study contributes to the literature by evaluating the effectiveness of savings and credit-based coping responses on food and nutrition security when shocks occur in a developing country setting. Our measures of food and nutrition security include the food consumption score and estimated calorie and micronutrient consumption per adult male equivalent per day. Results suggest that the use of savings and credit acquisition do not fully protect households from declining food and nutrition security when shocks occur, as households tend to consume fewer food groups when shock strategies are used. Findings may aid policymakers in developing adequate safety nets to allow households to build resiliency to shocks and achieve the sustainable development goal of ‘Zero Hunger’ by 2030.