The role of agriculture growth and poverty to aiding Fdi in agriculture inflows amongst low income economies organization of Islamic cooperation (OIC) countries

• Main Authors: Abd Rashid, Intan Maizura, Abu Bakar, Nor'Aznin
• Format: Article
• Language: English
• Published: International Journal of Scientific & Technology Research 2020
• Subjects: HC Economic History and Conditions
• Online Access: http://repo.uum.edu.my/28200/1/IJSTR%209%203%20%202020%201891%201894.pdf; http://repo.uum.edu.my/28200/; http://www.ijstr.org/research-paper-publishing.php?month=mar2020

Unlike previous studies, this study not only captured the degree of the links of FDI, economic growth and POV but also inspected the relationship between overall FDI in agriculture (FDIA) with Agriculture Growth (AG) and Poverty(POV) specifically. This study was also novel in employing a two-step estimation method using a dynamic GMM estimator to explore the role of AG and POV to aiding FDIA, instead of using only a static panel data estimator. The findings show that the effectiveness of FDIA in promoting AG and reducing POV is debatable. The results merely demonstrate that the FDIA in high income OIC economies needs to be modified further to reduce POV by planning an effective FDIA system through policymaking and attracting more foreign investors. AG and Market size agriculture (MSA) were the factors that had the most influence on FDIA, especially in the OIC low income OIC economies. In contrast, the negative and significant coefficients were POV and unemployment rate (UR). Lastly, the other independent agriculture sector variables, such as MSA, trade openness (TOA) and human capital agriculture (HCA), were all significant and were confirmed as determinants of FDIA in all of the low income OIC countries.