Effects of FDI on the Growth of Agricultural Sector in Côte d'Ivoire: An Empirical Analysis Based on Toda-Yamamoto Causality Tests and ARDL Cointegration

Jean Baptiste Tiemele, Kone Djakaridja and Jean Jacques Iritié ()

Journal of Sustainable Development, 2024, vol. 17, issue 6, 76

Abstract: This paper analyses the contribution of Foreign Direct Investment (FDI) to agricultural growth in Côte d'Ivoire over the period 1980-2021. The data come from World Development Indicators WDI (World Bank). The Toda-Yamamoto causality test and the ARDL cointegration approach are used. The results of the Toda-Yamamoto test show no causal link between FDI and agricultural growth, while those of the ARDL approach indicate that FDI has a negative impact on agricultural growth. There are several reasons for these results- insufficient resources allocated to the agricultural sector and the predominance of FDI in other sectors of activity in Côte d'Ivoire. Our results also show the role that the State must play in building infrastructure and increasing foreign trade.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:jsd123:v:17:y:2024:i:6:p:76

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