 Does Agricultural Foreign Direct Investment Boost the Human Development in Sub‐Saharan Africa?Edwin Mumah, Yangfen Chen and Yu Hong African Development Review, 2025, vol. 37, issue 3 Abstract: The welfare of sub‐Saharan Africa (SSA) is pivotal for achieving the UN Sustainable Development Goals (SDGs), with the agricultural sector playing a vital role. Many SSA nations increasingly rely on agricultural foreign direct investment (AFDI) to enhance agricultural development and welfare. However, the impact of AFDI on welfare remains controversial and poorly understood. This study employs panel data and moments quantile regression to examine AFDI's effect across 45 SSA countries from 1990 to 2022. Results indicate a significant positive effect on the Human Development Index (HDI) as the welfare indicator, with a one‐unit rise in AFDI linked to a 0.002%−0.008% increase in HDI. When the HDI is decomposed into income, education, and life expectancy, a one‐unit increase in AFDI correlates with increased income levels ($0.001) and life expectancy (0.002 years). Further analysis identifies a threshold of $5.77 million of AFDI beyond which its positive impact on HDI declines. Findings suggest that sustained and consistent AFDI enhances sustainable development and overall welfare in the SSA. Date: 2025 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:afrdev:v:37:y:2025:i:3:n:e70024 Ordering information: This journal article can be ordered from Access Statistics for this article African Development Review is currently edited by John C. Anyanwu, Hassan Aly and Kupukile Mlambo More articles in African Development Review from African Development Bank Contact information at EDIRC. |
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