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Tytuł artykułu

Trade Openness, Foreign Direct Investment and Sustainable Agriculture in Africa

Treść / Zawartość
Identyfikatory
Warianty tytułu
PL
Otwartość handlu, bezpośrednie inwestycje zagraniczne i zrównoważone rolnictwo w Afryce
Języki publikacji
EN
Abstrakty
EN
This study applied a panel data of 37 African countries in examining the impact of trade openness and foreign direct investment on sustainable agriculture towards the attainment of the United Nation (UN) Sustainable Development Goals (SDGs), especially, SDG-2, with the aim of ending extreme hunger, achieve food security and improve nutrition and promote sustainable agriculture. Data for the study was sourced from the Country Policy and Institutional Assessment (CPIA) and World Development Indicators (WDI) of the World Bank, for the period 2005 – 2019. To control for endogeneity, the study engaged the system Generalised Method of Moments (GMM). The result shows that FDI and trade openness have significant negative impact on agricultural sustainability in Africa. This result implies that, increase in FDI may decrease agricultural sustainability by 0.00294%, while increase in trade openness may lower agricultural sustainability by 0.430066 %. Therefore, the study concludes that while trade openness is negative, policy to raise local production towards export promotion should be encouraged. In addition, FDI should be encouraged to augment local employment and investment towards increasing output and productivity in the Africa region.
PL
W artykule wykorzystano dane panelowe z 37 krajów afrykańskich w badaniu wpływu otwartości handlu i bezpośrednich inwestycji zagranicznych na zrównoważone rolnictwo i osiągnięcie Celów zrównoważonego rozwoju ONZ, zwłaszcza SDG-2, który ma za zadanie wyeliminowanie skrajnego głodu, osiągniecie bezpieczeństwa żywnościowego oraz promowanie zrównoważonego rolnictwa. Dane do badania pochodzą z Country Policy and Institutional Assessment (CPIA) oraz World Development Indicators (WDI) Banku Światowego i obejmują lata 2005-2019. W celu kontroli endogeniczności w badaniu wykorzystano system Generalized Method of Moments (GMM). Wyniki pokazują, że Bezpośrednie Inwestycje Zagraniczne (FDI) i otwartość handlu mają znaczący negatywny wpływ na zrównoważony rozwój rolnictwa w Afryce. Wynik ten implikuje, że wzrost FDI może obniżyć zrównoważenie rolnictwa o 0,00294%, podczas gdy wzrost otwartości handlu może obniżyć zrównoważenie rolnictwa o 0,430066 %. Z tego wynika, że ​​chociaż otwartość handlu jest negatywna, należy zachęcać do polityki zwiększania produkcji lokalnej w kierunku promocji eksportu. Ponadto należy zachęcać do FDI w celu zwiększenia lokalnego zatrudnienia i inwestycji w celu zwiększenia produkcji i produktywności w Afryce.
Czasopismo
Rocznik
Strony
246--255
Opis fizyczny
Bibliogr. 52 poz., tab.
Twórcy
autor
  • Fuzhou University of International Studies and Trade, Research Center of Open Economics and Trade, Fuzhou, China
  • Xi’an University of Architecture and Technology, School of Public Administration, China
  • Covenant University, Department of Economics & Development Studies, Centre for Economics & Development Studies, Ota, Nigeria
  • University of Africa, Department of Economics, Toru Orua, Bayelsa State, Nigeria
  • University of Benin, Department of Economics, Centre of Excellence in Reproductive Health Innovation, Benin, Nigeria
  • Jiangxi University of Finance and Economics, School of Statistics, Nanchang, Jiangxi, China
Bibliografia
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  • 4. AGBA D., ADEWARA S., NWANJI T., YUSUF, M., ADZOR K., ABBAH B.,2018, Does foreign direct investment impact Agricultural output in Nigeria? an error correction modelling approach, Journal of Economics and Sustainable Development, 9(4): 1-11.
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  • 10. ASIEDU E., 2003a, Foreign direct investment in Africa: The role of government Policy, governance and Political instability, Mimeo, Department of Economics, University of Kansas: 1-13.
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  • 13. AWUNYO-VICTOR D., SACKEYR., 2018, Agricultural Sector Foreign Direct Investment and Economic Growth in Ghana, Journal of Innovation and Enterprenuer, 7(15): 67-82.
  • 14. BAMIRO O.A., 2018, Sustainable development goals and the Nigerian University System, the first public lecture by Centre of Excellence in Reproductive Health Innovation, University of Benin delivered in August, 2018.
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  • 17. BOND E., KAZUMICHI I., KAZUO N., 2012, The dynamic Heckscher-Ohlin Model: A diagrammatic Analysis, International Journal of Economic Theory, 8(2): 197-211, DOI: 10.1111/j.17427363.2012.00186.x.
  • 18. CHINODA T. 2020, The nexus between financial inclusion, trade and economic growth in Africa, Transnational Corporation Review, 12(3):266-275, DOI: 10.1080/19186444.20201742065.
  • 19. DE SILVA N., MALAGA J., JOHNSON J., 2003, Trade Liberalization effects on Agricultural Production Growth: The Case of Sri Lanka, Selected Paper Presented at the Southern Agricultural Economic Association (SAEA) annual meeting, https://ageconsearch.umnedu>finalpaper.SAEA.
  • 20. DJOKOTO J., 2003, Openness and Agricultural Performance in Ghana, Journal of Science and Technology (Ghana), 33 (2):24-36, DOI: 10.4314/just.v33i2.3.
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  • 27. HASSINE N., ROBICAUD, V., DECALUWE B.,2010, Agricultural Trade Liberalization, Productivity gain and Poverty Alleviation: aGenerla Equilibrium Analysis,CIRPEE Working Paper, 10-22.
  • 28. IDDRISU A., IMMURANA M., HALIDU B., 2015, The impact of foreign direct investment on the Performance of the Agricultural Sector in Ghana, International Journal of Academic Research in Business and Social Sciences, 5(7):240-259.
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  • 30. JAIBLAI P, SHENAI V., 2019, The determinants of foreign direct investment in sub-Saharan Economies:A Study of data from 1990-2017, International Journal of Financial Studies, 7(3):1-28, 43.
  • 31. KRUGMAN P., 1991. Increasing Return and Economic Growth, The Journal of Political Economy, 483-99.
  • 32. LAIPRAKOBSUPT, 2014, Democracy, trade openness and Agricultural trade policy in Southeast Asian Countries, Japanese Journal of Political Science,15(3): 465-484, DOI: 10.S146810991400019x.
  • 33. LAWAL A., NWANJI T., ASALEYE A., AHMED A, 2016, Economic growth, financial development and trade openness in Nigeria: An application of the ARDL Bound testing approach,Cogent Economics Finance, DOI: 10.1080%2F23322039.2016.1258810.
  • 34. MAHMOUD L., 2015, An investigation of the impact of FDI on economic growth: A Case Study of Mauritania, International Journal of Economics and Management Science, 4(2):1-5.
  • 35. MATTHEW O. A., KAYODE F., OSABOHIEN R., URHIE E., FASINA F. F., FOLARIN, E. M., EDAFE, O. D., 2021,. Business Climate, Infrastructure and Institutions in Nigeria: Implication for Foreign Direct Investment. African Journal of Business and Economic Research, 2021(si1), 303-321.
  • 36. MATSUYAMA K., 2019, Engel's law in the global economy: demand-Induced Patterns of structural changes, structural changes, innovation and trade, Econometrica, 87(2): 497-528, DOI: 10.3982/ECTA13765.
  • 37. MAZHIKEYEV A., EDWARD T., RIZOU M., 2015, Openness and Isolation: The Trade Performance of Former Soviet Central Asian Countries, International Business Review, 24(16):935- 947, DOI: 10.1016/j.ibusrev-2015.03.001.
  • 38. MILJKOVIC D., SHAIK S., 2010, The Impact of Trade Openness on Technical Efficiency in U.S.Agriculture, Journal of International Agricultural Trade and Development, 7:1-13.
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  • 40. OLAYIWOLA K., OSABUOHIEN E., OKODUA H., OLA-DAVID O., 2015, Economic integration, trade facilitation and Agricultural export Performance in ECOWAS sub-region, Regional integration and trade in Africa, Macmillian, New York: 31-46.
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  • 43. OSABOHIEN R., OSABUOHIEN E.S., KHANG M.K., NGUYEN D.P., 2021a, Agricultural trade, foreign direct investment and inclusive growth in developing countries: evidence from West Africa, Transnational Corporations Review, DOI:10.1080/19186444.2021.1936986.
  • 44. OSABOHIEN R., ADELEYE,B.N., OSABUOHIEN E., 2021b, African growth and opportunity act and trade performance in Nigeria, Heliyon 7: e06410, DOI: 10.1016/j.heliyon.2021.e06410.
  • 45. OSABUOHIEN E., EFOBI U., 2011, Trade outcomes in Africa's regional Economic Communities and Institutional Quality: Some Policy Prescriptions, Economic Insights, Trend and Challenges, LXIII(4):19-32.
  • 46. OSU S, SOILE L, SANGOSANYA A., 2021, Foreign direct investment and Nigerian economic growth: a sectoral analysis, Philippine Review of Economics, 44: 171-194.
  • 47. POTELWA X, LUBINGA M., NTASHANGASE T,. 2016, Factors that Influence the Growth of South Africa's Agricultural Export to World Market, European Scientific Journal, 12(34): 195-215.
  • 48. SHOBANDE O., 2019, Effects of economic intergration on Agricultural export performance inselected West African Countries, Economies,7(3):1-14.
  • 49. SHOBANDE O., EZENEKWU U., UZONWANNE M.,2018a, Revisiting economic integration in West Africa: a theoretical exposition, Journal of Economics and Social Thought, 5: 3-7.
  • 50. SOTAMENOU J, NEHGWELAH G.,2018, Impact of free trade on Agriculture: evidence From Cameroun, Journal of Smart Economic Growth, 3(2): 55-70.
  • 51. United Nations Conference on Trade and Development (UNCTAD), 2005, Rethinking the Role of FDI, Economic Development in Africa, Geneva: 53).
  • 52. United Nations Conference on Trade and Development, 2019, Volume of FDI to West Africa in the Past 10 years, UN, New York
Uwagi
Opracowanie rekordu ze środków MEiN, umowa nr SONP/SP/546092/2022 w ramach programu "Społeczna odpowiedzialność nauki" - moduł: Popularyzacja nauki i promocja sportu (2022-2023).
Typ dokumentu
Bibliografia
Identyfikator YADDA
bwmeta1.element.baztech-4a939cb2-a947-486d-b47e-73129667afba
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