The impact of FDI on the agriculture sector: A case study from Bangladesh

This paper aims to inspect the relationship between Foreign Direct Investment (FDI) and the agricultural sector of Bangladesh. This study is based on time series data from 1972 to 2021. The Auto Regressive Distributed Lag (ARDL) model and F-Bound test are used to examine the relationship between the...

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Main Authors: Zakia Sultana, Md Nazmus Sadekin
Format: Article
Language:English
Published: Elsevier 2023-12-01
Series:Heliyon
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2405844023101915
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author Zakia Sultana
Md Nazmus Sadekin
author_facet Zakia Sultana
Md Nazmus Sadekin
author_sort Zakia Sultana
collection DOAJ
description This paper aims to inspect the relationship between Foreign Direct Investment (FDI) and the agricultural sector of Bangladesh. This study is based on time series data from 1972 to 2021. The Auto Regressive Distributed Lag (ARDL) model and F-Bound test are used to examine the relationship between the variables under study. The empirical finding suggests that FDI has a considerable negative influence on the agricultural sector in Bangladesh in the long term. Moreover, this is also found by the study that FDI has no effect in the short run on the country's agricultural sector. This study recommends that governments should adopt agriculture-friendly policies, and should adopt some training facilities for the farmer to increase their farming skills so that FDI can develop the agricultural sector.
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spelling doaj.art-1e50920cb4fa4e4999c0eecd01a1c9e72023-12-21T07:35:20ZengElsevierHeliyon2405-84402023-12-01912e22983The impact of FDI on the agriculture sector: A case study from BangladeshZakia Sultana0Md Nazmus Sadekin1Department of Economics, Mawlana Bhashani Science and Technology University, Santosh, Tangail-1902, BangladeshCorresponding author.; Department of Economics, Mawlana Bhashani Science and Technology University, Santosh, Tangail-1902, BangladeshThis paper aims to inspect the relationship between Foreign Direct Investment (FDI) and the agricultural sector of Bangladesh. This study is based on time series data from 1972 to 2021. The Auto Regressive Distributed Lag (ARDL) model and F-Bound test are used to examine the relationship between the variables under study. The empirical finding suggests that FDI has a considerable negative influence on the agricultural sector in Bangladesh in the long term. Moreover, this is also found by the study that FDI has no effect in the short run on the country's agricultural sector. This study recommends that governments should adopt agriculture-friendly policies, and should adopt some training facilities for the farmer to increase their farming skills so that FDI can develop the agricultural sector.http://www.sciencedirect.com/science/article/pii/S2405844023101915Agricultural sectorARDLBangladeshDevaluationF-bound testForeign direct investment
spellingShingle Zakia Sultana
Md Nazmus Sadekin
The impact of FDI on the agriculture sector: A case study from Bangladesh
Heliyon
Agricultural sector
ARDL
Bangladesh
Devaluation
F-bound test
Foreign direct investment
title The impact of FDI on the agriculture sector: A case study from Bangladesh
title_full The impact of FDI on the agriculture sector: A case study from Bangladesh
title_fullStr The impact of FDI on the agriculture sector: A case study from Bangladesh
title_full_unstemmed The impact of FDI on the agriculture sector: A case study from Bangladesh
title_short The impact of FDI on the agriculture sector: A case study from Bangladesh
title_sort impact of fdi on the agriculture sector a case study from bangladesh
topic Agricultural sector
ARDL
Bangladesh
Devaluation
F-bound test
Foreign direct investment
url http://www.sciencedirect.com/science/article/pii/S2405844023101915
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