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

Zakia Sultana; Md Nazmus Sadekin

doi:10.1016/j.heliyon.2023.e22983

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

Heliyon. 2023 Nov 28;9(12):e22983. doi: 10.1016/j.heliyon.2023.e22983. eCollection 2023 Dec.

Authors

Zakia Sultana¹, Md Nazmus Sadekin¹

Affiliation

¹ Department of Economics, Mawlana Bhashani Science and Technology University, Santosh, Tangail-1902, Bangladesh.

Abstract

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.

Keywords: ARDL; Agricultural sector; Bangladesh; Devaluation; F-bound test; Foreign direct investment.