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

Authors: Mohammed Ridha Boucenna; Mohamed Cherif Benzouai; Brahim Adli

Addresses: Department of Economics, LAVMF Laboratory, University of Oum El Bouaghi, Oum El Bouaghi 04000, Algeria ' Department of Finance and Accounting, INIF Laboratory, University of Oum El Bouaghi, Oum El Bouaghi 04000, Algeria ' Department of Economics, INIF Laboratory, University of Oum El Bouaghi, Oum El Bouaghi 04000, Algeria

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.

Keywords: foreign direct investment; agriculture productivity; pooled mean group ARDL; panel-data.

DOI: 10.1504/IJGE.2021.117676

International Journal of Green Economics, 2021 Vol.15 No.1, pp.42 - 58

Received: 07 Jul 2020
Accepted: 24 Jun 2021
Published online: 20 Sep 2021 *

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