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Effect of foreign direct investment on agriculture productivity: a PMG panel ARDL approach

Author

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  • Mohammed Ridha Boucenna
  • Mohamed Cherif Benzouai
  • Brahim Adli

Abstract

The aim of this study is to analyse the relationship between foreign direct investment and agriculture productivity for a panel of 131 countries over the period 1980-2016, with a Pooled Mean Group Panel ARDL model. The results of the long-run equation show a significantly positive effect of foreign direct investment on the Agriculture Productivity Index. The results of the short-run equation present the insignificant short-run relationship between FDI and agriculture productivity. The most important implication of this study is that governments should not rely on macroeconomic policies that use FDI to promote the productivity of the agriculture sector at the short term.

Suggested Citation

  • Mohammed Ridha Boucenna & Mohamed Cherif Benzouai & Brahim Adli, 2021. "Effect of foreign direct investment on agriculture productivity: a PMG panel ARDL approach," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 15(1), pages 42-58.
    • Handle: RePEc:ids:ijgrec:v:15:y:2021:i:1:p:42-58
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    Cited by:

    1. Kuang, Hewu & Liang, Yiyan & Zhao, Wenjia & Cai, Jiahong, 2023. "Impact of natural resources and technology on economic development and sustainable environment – Analysis of resources-energy-growth-environment linkages in BRICS," Resources Policy, Elsevier, vol. 85(PB).

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