Human Capital and Agricultural Development: Impact of FDI in the WAEMU

We aimed to analyze the impact of foreign direct investment (FDI) on the interrelationship between human capital and agricultural development in the West African Economic and Monetary Union (WAEMU) zone. The econometric model was estimated using the Pooled Mean Group method. The estimates reveal an impact on the interrelation between human capacities and agricultural development in the WAEMU countries. Furthermore, it is certain that the presence of foreign investments in the WAEMU zone has created activities, which remain insufficient in relation to the potential of the zone. These inadequacies are explained by the absence of sufficiently dynamic sub-regional policies capable of boosting development by raising the level of human capital and promoting sustainable and profitable agriculture. Similarly, these investments have not allowed local industrial integration. As a result, few domestic sectors are created and most inputs are imported, which worsens the current account deficits of the WAEMU countries. The implications in terms of economic policy seem significant. Free access to the factor market should be guaranteed to farmers in the WAEMU countries with the agri-food policy that could lead countries to acquire competitive technical skills. Indeed, it is necessary to (1) diversify training in specific professions that aim to improve the productivity of farmers; (2) thoroughly reform the education system; (3) increase access to technological offers; (4) make the private sector more and better responsible so that it develops initiatives in the field of education and collaboration with local authorities and individual operators and (5) promote good governance because it is a factor in attracting FDI.