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Does Agricultural investment still promote economic growth in China? Empirical evidence from ARDL bounds testing model

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  • Bakari, Sayef
  • Sofien, Tiba

Abstract

One of the major unresolved research issues in agriculture is the question as to whether agricultural investments still a promoter of economic growth at the regional and local levels. The concern is not with the agricultural benefits, principally measured as food security, but whether there are additional development benefits from these investments. In this paper, we have developed a new approach to study the impact of agricultural investment on economic growth. By taking the case of China, this study is based on the Auto-Regressive Distributive Lags (ARDL) approach that is proposed by Pesaran et al (2002). The empirical estimate yields interesting results. In the short and long terms, agricultural investment has a positive effect on economic growth. The findings of this research have important implications for further policy designs that seek to maintain the agricultural sector in China in the future.

Suggested Citation

  • Bakari, Sayef & Sofien, Tiba, 2019. "Does Agricultural investment still promote economic growth in China? Empirical evidence from ARDL bounds testing model," MPRA Paper 94552, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:94552
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    File URL: https://mpra.ub.uni-muenchen.de/94552/1/MPRA_paper_94552.pdf
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    References listed on IDEAS

    as
    1. Maria Herrerias, 2010. "The causal relationship between equipment investment and infrastructures on economic growth in China," Frontiers of Economics in China, Springer;Higher Education Press, vol. 5(4), pages 509-526, December.
    2. Strike Mbulawa, 2017. "The Impact Of Economic Infrastructure On Long Term Economic Growth In Botswana," Journal of Smart Economic Growth, , vol. 2(1), pages 15-33, March.
    3. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    4. repec:ebl:ecbull:eb-17-00690 is not listed on IDEAS
    5. Younis, Fizza, 2014. "Significance of Infrastructure Investment for Economic Growth," MPRA Paper 72659, University Library of Munich, Germany, revised 01 Jun 2015.
    6. Sayef Bakari & Mohamed Mabrouki & Asma Elmakki, 2018. "The Impact of Domestic Investment in the Industrial Sector on Economic Growth with Partial Openness: Evidence from Tunisia," Economics Bulletin, AccessEcon, vol. 38(1), pages 111-128.
    7. repec:seg:012016:v:4:y:2019:i:1:p:1-15 is not listed on IDEAS
    8. Robaina-Alves, Margarita & Moutinho, Victor, 2014. "Decomposition of energy-related GHG emissions in agriculture over 1995–2008 for European countries," Applied Energy, Elsevier, vol. 114(C), pages 949-957.
    9. Sayef Bakari & Mohamed Mabrouki & Abdelhafidh Othmani, 2018. "The Six Linkages Between Foreign Direct Investment, Domestic Investment, Exports, Imports, Labor Force And Economic Growth: New Empirical And Policy Analysis From Nigeria," Journal of Smart Economic Growth, , vol. 3(1), pages 25-43, Juin.
    10. Bakari, Sayef, 2018. "The Impact of Domestic Investment on Economic Growth New Policy Analysis from Algeria," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 3(1), pages 35-51, March.
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    12. Omri, Anis & kahouli, Bassem, 2014. "The nexus among foreign investment, domestic capital and economic growth: Empirical evidence from the MENA region," Research in Economics, Elsevier, vol. 68(3), pages 257-263.
    13. Tendall, Danielle M. & Gaillard, Gérard, 2015. "Environmental consequences of adaptation to climate change in Swiss agriculture: An analysis at farm level," Agricultural Systems, Elsevier, vol. 132(C), pages 40-51.
    14. Sayef Bakari, 2017. "The Impact Of Domestic Investment On Economic Growth: New Evidence From Malaysia," Journal of Smart Economic Growth, , vol. 2(2), pages 105-121, September.
    15. Bakari, Sayef & Mabrouki, Mohamed, 2018. "The Impact of Agricultural Trade on Economic Growth in North Africa: Econometric Analysis by Static Gravity Model," MPRA Paper 85116, University Library of Munich, Germany.
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    17. repec:ipg:wpaper:2014-557 is not listed on IDEAS
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    More about this item

    Keywords

    Agricultural Investment; Economic Growth; China; ARDL.;

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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