Foreign direct investment and agricultural output nexus in Bangladesh: An autoregressive distributed lag approach
Foreign Direct Investment’s (FDI) contribution to the agricultural share of GDP is a questionable topic in Bangladesh’s current economy. Therefore, this study aims to inspect the effect of FDI inflow in agriculture on the agriculture sector’s contribution to Bangladesh’s economic development. The st...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2024-03-01
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| Series: | Journal of Agriculture and Food Research |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666154324000796 |
| _version_ | 1797271270709002240 |
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| author | Mohammad Chhiddikur Rahman Md Shajedur Rahaman Md Abdur Rouf Sarkar Mohammad Ariful Islam |
| author_facet | Mohammad Chhiddikur Rahman Md Shajedur Rahaman Md Abdur Rouf Sarkar Mohammad Ariful Islam |
| author_sort | Mohammad Chhiddikur Rahman |
| collection | DOAJ |
| description | Foreign Direct Investment’s (FDI) contribution to the agricultural share of GDP is a questionable topic in Bangladesh’s current economy. Therefore, this study aims to inspect the effect of FDI inflow in agriculture on the agriculture sector’s contribution to Bangladesh’s economic development. The study used advanced econometric tools to the time series data obtained from the Bangladesh Bank and the Bangladesh Economic Review from 1996 to 2021. For the empirical analysis, the authors employ the Autoregressive Distributed Lag (ARDL) co-integration approach to measure short-run dynamics and long-run relationship between FDI inflow in agriculture (AFDI) and agricultural share to GDP (AGDP) in Bangladesh. The findings from the estimation confirm that AFDI has a statistically significant effect on AGDP in the short run; in the long run, it is insignificant. Bangladesh will have to improve its policy for creating the environment to attract FDI in the agricultural sector to draw more promising investments to boost agricultural productivity. In this regard, the country can reform its taxation and agricultural investment policies to create an ‘investment-friendly climate’ for attracting long-term foreign capital in agriculture. |
| first_indexed | 2024-03-07T13:59:23Z |
| format | Article |
| id | doaj.art-a65ac9060bab43989e1f7c6df635a977 |
| institution | Directory Open Access Journal |
| issn | 2666-1543 |
| language | English |
| last_indexed | 2024-03-07T13:59:23Z |
| publishDate | 2024-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Agriculture and Food Research |
| spelling | doaj.art-a65ac9060bab43989e1f7c6df635a9772024-03-07T05:30:08ZengElsevierJournal of Agriculture and Food Research2666-15432024-03-0115101042Foreign direct investment and agricultural output nexus in Bangladesh: An autoregressive distributed lag approachMohammad Chhiddikur Rahman0Md Shajedur Rahaman1Md Abdur Rouf Sarkar2Mohammad Ariful Islam3Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur, 1701, Bangladesh; Corresponding author.Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur, 1701, BangladeshAgricultural Economics Division, Bangladesh Rice Research Institute, Gazipur, 1701, Bangladesh; School of Economics, Zhongnan University of Economics and Law, Wuhan, 430073, ChinaAgricultural Economics Division, Bangladesh Rice Research Institute, Gazipur, 1701, BangladeshForeign Direct Investment’s (FDI) contribution to the agricultural share of GDP is a questionable topic in Bangladesh’s current economy. Therefore, this study aims to inspect the effect of FDI inflow in agriculture on the agriculture sector’s contribution to Bangladesh’s economic development. The study used advanced econometric tools to the time series data obtained from the Bangladesh Bank and the Bangladesh Economic Review from 1996 to 2021. For the empirical analysis, the authors employ the Autoregressive Distributed Lag (ARDL) co-integration approach to measure short-run dynamics and long-run relationship between FDI inflow in agriculture (AFDI) and agricultural share to GDP (AGDP) in Bangladesh. The findings from the estimation confirm that AFDI has a statistically significant effect on AGDP in the short run; in the long run, it is insignificant. Bangladesh will have to improve its policy for creating the environment to attract FDI in the agricultural sector to draw more promising investments to boost agricultural productivity. In this regard, the country can reform its taxation and agricultural investment policies to create an ‘investment-friendly climate’ for attracting long-term foreign capital in agriculture.http://www.sciencedirect.com/science/article/pii/S2666154324000796Agriculture share to GDPBound co-integrationFDIGDPLong- and short-run relationship |
| spellingShingle | Mohammad Chhiddikur Rahman Md Shajedur Rahaman Md Abdur Rouf Sarkar Mohammad Ariful Islam Foreign direct investment and agricultural output nexus in Bangladesh: An autoregressive distributed lag approach Journal of Agriculture and Food Research Agriculture share to GDP Bound co-integration FDI GDP Long- and short-run relationship |
| title | Foreign direct investment and agricultural output nexus in Bangladesh: An autoregressive distributed lag approach |
| title_full | Foreign direct investment and agricultural output nexus in Bangladesh: An autoregressive distributed lag approach |
| title_fullStr | Foreign direct investment and agricultural output nexus in Bangladesh: An autoregressive distributed lag approach |
| title_full_unstemmed | Foreign direct investment and agricultural output nexus in Bangladesh: An autoregressive distributed lag approach |
| title_short | Foreign direct investment and agricultural output nexus in Bangladesh: An autoregressive distributed lag approach |
| title_sort | foreign direct investment and agricultural output nexus in bangladesh an autoregressive distributed lag approach |
| topic | Agriculture share to GDP Bound co-integration FDI GDP Long- and short-run relationship |
| url | http://www.sciencedirect.com/science/article/pii/S2666154324000796 |
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