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Analyzing the Relationship between Agricultural FDI and Food Security: Evidence from Belt and Road Countries

Author

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  • Hongxing Yao

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Mohammed Ismail Alhussam

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Omar Abu Risha

    (School of Statistics, Dongbei University of Finance and Economics, Dalian 116025, China)

  • Bilal Ahmed Memon

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

Abstract

This study analyzes the relationship between agricultural foreign direct investment (FDI) and food security on Belt and Road Initiative (BRI) countries in a panel framework over the period 2006–2015 using correlation analysis, the specific-effect model, and the 2SLS technique. The study aims to: first, analyze the correlation between agricultural FDI and food security for each country, individually; then, investigate whether there is a direct relationship, using the specific-effect model. Finally, by taking one step further, this study uses the 2SLS method to determine whether there is an indirect relationship through agricultural productivity. Our results show that the sampled countries have clear differences in the direction of the relationship between food security and agricultural FDI. But, in general, the agricultural FDI has a positive direct and indirect effect on food security; this effect is seen clearly when the country attracts agricultural FDIs steadily.

Suggested Citation

  • Hongxing Yao & Mohammed Ismail Alhussam & Omar Abu Risha & Bilal Ahmed Memon, 2020. "Analyzing the Relationship between Agricultural FDI and Food Security: Evidence from Belt and Road Countries," Sustainability, MDPI, vol. 12(7), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2906-:d:341915
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    6. Fajar Sari Wardhani & Tri Haryanto, 2020. "Foreign Direct Investment in Agriculture and Food Security in Developing Countries," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 14(4), December.
    7. Yameng Wang & Apurbo Sarkar & Linyan Ma & Qian Wu & Feng Wei, 2021. "Measurement of Investment Potential and Spatial Distribution of Arable Land among Countries within the “Belt and Road Initiative”," Agriculture, MDPI, vol. 11(9), pages 1-23, September.
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