Symmetric and Asymmetric Effects of Foreign Direct Investment on Agriculture Sector Performance: Evidence from Ethiopia

2025-06-23T04:53:13+00:00

This study examines the symmetrical and asymmetrical impacts of agricultural FDI on the performance of Ethiopia's agricultural sector. It uses multivariate time series data from secondary sources spanning 1981-2021. The data include agricultural real GDP, agricultural FDI inflow, and selected macroeconomic variables. Linear ARDL and non-linear ARDL (NARDL) econometric models were employed for analysis. Results from the asymmetric ARDL model indicate that positive FDI shocks have a significant and favorable effect on agricultural real GDP by 0.05% in the long run. However, negative FDI shocks were found to be statistically insignificant. In the short run, increases in FDI inflow during previous periods significantly reduced current agricultural real GDP, while decreases in FDI inflow also significantly diminished current agricultural production. According to the symmetric ARDL model, there was no significant relationship between the two variables in either the short or long term. The Granger causality test revealed a unidirectional relationship from FDI inflow to agricultural real GDP. In conclusion, agricultural FDI inflow significantly affects the performance of agricultural real GDP in the long run; however, its positive effect is not automatic in the short run. Therefore, attracting more FDI inflow to the agricultural sector is recommended to address financial and technological gaps in Ethiopia's agriculture sector.

Examining Factors Influencing Youth Farmers' Involvement in Crop and Animal Self-Projects in Rural Areas of Akwa Ibom State, Nigeria

2025-06-30T14:37:07+00:00

The research identified the policy variables necessary to promote youth engagement in crop and animal production within the rural regions of Akwa Ibom State, located in southern Nigeria. A combination of sampling methods was employed to select 300 youth farmers from the study area. To analyze the collected data, descriptive statistics and Poisson regression analyses were conducted. The empirical findings indicated that the number of years youth farmers have participated in social organizations, the frequency with which they access state-owned agricultural programs, the visits from extension agents, their level of formal education, and their purpose for farming all positively influenced the number of crops cultivated and animals raised by them in the rural areas. Conversely, the cost associated with hired labor exhibited a negative correlation with the number of agricultural enterprises adopted by the youth farmers. To enhance youth participation in crop and animal production in the region, it is recommended that the government strengthen the agricultural extension system and implement more youth-focused agricultural intervention programs. Fostering social networks among youth farmers and improving educational facilities in rural areas should be prioritized. Furthermore, an input supply system tailored specifically for youth farmers should be established to decrease production costs. Additionally, the establishment of farm machinery rental centers in the rural areas of the state could help alleviate the high costs of hired labor faced by youth farmers in the region.

Agricultural Development

Symmetric and Asymmetric Effects of Foreign Direct Investment on Agriculture Sector Performance: Evidence from Ethiopia

Examining Factors Influencing Youth Farmers' Involvement in Crop and Animal Self-Projects in Rural Areas of Akwa Ibom State, Nigeria