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Does Agricultural investment still promote economic growth in China? Empirical evidence from ARDL bounds testing model

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  • Bakari, Sayef
  • Sofien, Tiba

Abstract

One of the major unresolved research issues in agriculture is the question as to whether agricultural investments still a promoter of economic growth at the regional and local levels. The concern is not with the agricultural benefits, principally measured as food security, but whether there are additional development benefits from these investments. In this paper, we have developed a new approach to study the impact of agricultural investment on economic growth. By taking the case of China, this study is based on the Auto-Regressive Distributive Lags (ARDL) approach that is proposed by Pesaran et al (2002). The empirical estimate yields interesting results. In the short and long terms, agricultural investment has a positive effect on economic growth. The findings of this research have important implications for further policy designs that seek to maintain the agricultural sector in China in the future.

Suggested Citation

  • Bakari, Sayef & Sofien, Tiba, 2019. "Does Agricultural investment still promote economic growth in China? Empirical evidence from ARDL bounds testing model," MPRA Paper 94552, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:94552
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    2. Sayef Bakari & Mohamed Mabrouki & Asma Elmakki, 2018. "The Impact of Domestic Investment in the Industrial Sector on Economic Growth with Partial Openness: Evidence from Tunisia," Economics Bulletin, AccessEcon, vol. 38(1), pages 111-128.
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    19. Sayef Bakari & Samir Abdelhafidh, 2018. "Structure of Agricultural Investment and Economic Growth in Tunisia: An ARDL Cointegration Approach," Economic Research Guardian, Mutascu Publishing, vol. 8(2), pages 40-64, December.
    20. Sayef Bakari, 2017. "The Impact Of Domestic Investment On Economic Growth: New Evidence From Malaysia," Journal of Smart Economic Growth, , vol. 2(2), pages 105-121, September.
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    Cited by:

    1. Bakari, Sayef & El Weriemmi, Malek, 2022. "Which is the best for Tunisian Economic Growth: Urbanization or Ruralization?," MPRA Paper 112208, University Library of Munich, Germany.
    2. El Weriemmi, Malek & Bakari, Sayef, 2024. "Impacts of Agricultural Exports and CO2 Emissions on Economic Growth: New Evidence from High Income Countries," MPRA Paper 121697, University Library of Munich, Germany.
    3. El Weriemmi, Malek & Bakari, Sayef, 2024. "Impacts of Agricultural Exports and CO2 Emissions on Economic Growth: New Evidence from High Income Countries," MPRA Paper 121888, University Library of Munich, Germany.
    4. Bakari, Sayef & El Weriemmi, Malek, 2022. "Exploring the Impact of Agricultural Investment on Economic Growth in France," MPRA Paper 113970, University Library of Munich, Germany.
    5. Mkadmi, Jamel Eddine & Bakari, Sayef & Msai, Achwak, 2021. "Assessing the Impact of Tax Policies on Economic Growth in Tunisia: New Empirical and Policy Analysis," MPRA Paper 109023, University Library of Munich, Germany.

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    More about this item

    Keywords

    Agricultural Investment; Economic Growth; China; ARDL.;
    All these keywords.

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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