Trade Openness, Foreign Direct Investment and Sustainable Agriculture in Africa

Ping Ju


Fuzhou University of International Studies and Trade, Research Center of Open Economics and Trade, Fuzhou, China (China)

Muhammad Khalid Anser


Xi’an University of Architecture and Technology, School of Public Administration, China (China)

Romanus Osabohien

romik247@gmail.com
Covenant University, Department of Economics & Development Studies, Centre for Economics & Development Studies, Ota, Nigeria (Nigeria)

Onyinye Ochuba


University of Africa, Department of Economics, Toru Orua, Bayelsa State, Nigeria (Nigeria)

Rolle Remi Ahuru


University of Benin, Department of Economics, Centre of Excellence in Reproductive Health Innovation, Benin, Nigeria (Benin)

Junaid Ashraf


Jiangxi University of Finance and Economics, School of Statistics, Nanchang, Jiangxi, China (China)

Abstract

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.


Keywords:

agriculture, sustainability, trade liberalisation, sustainable development

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Published
2022-01-03

Cited by

Ju, P., Anser, M. K., Osabohien, R., Ochuba, O., Ahuru, R. R., & Ashraf, J. (2022). Trade Openness, Foreign Direct Investment and Sustainable Agriculture in Africa. Problemy Ekorozwoju, 17(1), 246–255. https://doi.org/10.35784/pe.2022.1.22

Authors

Ping Ju 

Fuzhou University of International Studies and Trade, Research Center of Open Economics and Trade, Fuzhou, China China

Authors

Muhammad Khalid Anser 

Xi’an University of Architecture and Technology, School of Public Administration, China China

Authors

Romanus Osabohien 
romik247@gmail.com
Covenant University, Department of Economics & Development Studies, Centre for Economics & Development Studies, Ota, Nigeria Nigeria

Authors

Onyinye Ochuba 

University of Africa, Department of Economics, Toru Orua, Bayelsa State, Nigeria Nigeria

Authors

Rolle Remi Ahuru 

University of Benin, Department of Economics, Centre of Excellence in Reproductive Health Innovation, Benin, Nigeria Benin

Authors

Junaid Ashraf 

Jiangxi University of Finance and Economics, School of Statistics, Nanchang, Jiangxi, China China

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