Impact of foreign direct investment on agricultural production and exports of SADC countries

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F25%3A43909590" target="_blank" >RIV/60076658:12510/25:43909590 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.sciencedirect.com/science/article/pii/S259029112500227X?pes=vor&utm_source=scopus&getft_integrator=scopus" target="_blank" >https://www.sciencedirect.com/science/article/pii/S259029112500227X?pes=vor&utm_source=scopus&getft_integrator=scopus</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.ssaho.2025.101499" target="_blank" >10.1016/j.ssaho.2025.101499</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Impact of foreign direct investment on agricultural production and exports of SADC countries

Popis výsledku v původním jazyce

This study investigates the impact of Foreign Direct Investment (FDI) on agricultural production and exports inselected Southern African Development Community (SADC) countries over the period 2001–2021, employing amixed-effects model. The empirical evidence reveals that FDI serves as a dual catalyst, directly enhancing domestic agricultural production while simultaneously strengthening export capacity in the sector, underscoring itspivotal role in driving agricultural sector growth in SADC countries. While FDI impacts both agricultural production and exports, its effect on production is more pronounced when human capital is considered, suggestingthe importance of host country’s absorptive capacity in maximising FDI benefits. The positive and significantimpact of FDI on agricultural exports suggests that FDI in African agricultural sectors is not only export-orientedbut also instrumental in enhancing market access and competitiveness of African agricultural products in theglobal market. However, the interaction between FDI and human capital exhibits diminishing returns, reflectingdeficiencies in the skills and technological proficiency of the region’s labour force. The study finds limited evidence of mediating effects of infrastructure, and trade openness in the FDI-agriculture nexus. Instead, tradeopenness exerts a direct positive influence on agricultural exports, while human capital directly enhancesagricultural production. To fully leverage the benefits of FDI inflows into the agricultural sectors of SADCcountries, host countries should prioritize investments in human capital development and implement targetedpolicies to attract export-oriented FDI.

Název v anglickém jazyce

Impact of foreign direct investment on agricultural production and exports of SADC countries

Popis výsledku anglicky

This study investigates the impact of Foreign Direct Investment (FDI) on agricultural production and exports inselected Southern African Development Community (SADC) countries over the period 2001–2021, employing amixed-effects model. The empirical evidence reveals that FDI serves as a dual catalyst, directly enhancing domestic agricultural production while simultaneously strengthening export capacity in the sector, underscoring itspivotal role in driving agricultural sector growth in SADC countries. While FDI impacts both agricultural production and exports, its effect on production is more pronounced when human capital is considered, suggestingthe importance of host country’s absorptive capacity in maximising FDI benefits. The positive and significantimpact of FDI on agricultural exports suggests that FDI in African agricultural sectors is not only export-orientedbut also instrumental in enhancing market access and competitiveness of African agricultural products in theglobal market. However, the interaction between FDI and human capital exhibits diminishing returns, reflectingdeficiencies in the skills and technological proficiency of the region’s labour force. The study finds limited evidence of mediating effects of infrastructure, and trade openness in the FDI-agriculture nexus. Instead, tradeopenness exerts a direct positive influence on agricultural exports, while human capital directly enhancesagricultural production. To fully leverage the benefits of FDI inflows into the agricultural sectors of SADCcountries, host countries should prioritize investments in human capital development and implement targetedpolicies to attract export-oriented FDI.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Social Sciences and Humanities Open

ISSN

—

e-ISSN

2590-2911

Svazek periodika

11

Číslo periodika v rámci svazku

April 2025

Stát vydavatele periodika

GB - Spojené království Velké Británie a Severního Irska

Počet stran výsledku

10

Strana od-do

1-10

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-105003179996