Agricultural trade, foreign direct investment and inclusive growth in developing countries: evidence from West Africa

Osabohien, Romanus and Iqbal, Badar Alam and Osabuohien, E. S. C. and Khan, Muhammad Kaleem and Nguyen, Dong Phong (2021) Agricultural trade, foreign direct investment and inclusive growth in developing countries: evidence from West Africa. Transnational Corporations Review.

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Abstract

This study examines how agricultural trade and Foreign Direct Investment (FDI) influence inclusive growth in developing countries, using the case of West Africa. It engages data obtained from various World Bank sources for 15 West African countries that are members of the Economic Community of West African States (ECOWAS) for the period 2000–2019. The study calculates inclusive growth using the Principal Component Analysis (PCA) and applies the Two- stage Least Squares (2SLS) to resolve the possible issue of endogeneity. The findings show, among others, that agricultural trade is significant in explaining the level of inclusive growth. It implies that a 1% increase in agricultural trade may increase inclusive growth by 0.88% (first stage) and 0.99% (second stage), respectively. In contrast, FDI is insignificant in explaining inclusive growth. Therefore, the study recommends that effective policies such as flexible trade policies to enhance the exchange of goods and services should be implemented, which is crucial given the need for more resilience in post-COVID-19 ECOWAS.

Item Type:	Article
Uncontrolled Keywords:	Agricultural trade; COVID-19 pandemic; FDI; inclusive growth
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	AKINWUMI
Date Deposited:	24 Apr 2023 16:20
Last Modified:	24 Apr 2023 16:20
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/16839

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