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Does FDI moderate the role of public R&D in accelerating agricultural production in Africa?

  • Philip Kofi Adom*
  • , Dosse Mawussi Djahini-Afawoubo
  • , Saidi Atanda Mustapha
  • , Stephane Gandjon Fankem
  • , Nghargbu Rifkatu
  • *Corresponding author for this work

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

Purpose: The agriculture sector in Africa is a major employer, but production levels have fallen short of demand. To match future demand, public investment in research and development (R&D) is required. The purpose of this paper is to investigate how foreign direct investments (FDIs) moderate the effects of public R&D on Africa’s agricultural production. 
Design/methodology/approach: This study estimates an unbalanced panel fixed effect model that consists of 28 African countries covering the period 1980–2014. 
Findings: Public R&D increases production in the agriculture sector, however, the effects reverse after ten years. Though FDIs have direct positive effects on production, indirectly, it reduces the productivity potential of public R&D due to the possible dependency syndrome associated with FDIs. Traditional inputs like land, capital, and labour and good political institutions positively drive production, but adverse changes in the weather reduce production. 
Practical implications: There should be a frequent update of R&D and improvement in maintenance culture. FDIs should be seen as complementary efforts, and not as substitute efforts to domestic investment efforts in R&D. 
Originality/value: Insufficient domestic investment has increased the dependence on FDIs. In this regard, FDIs effect on production could be tricky since it increases the volatility in agricultural R&D. This paper contributes to the literature by examining how FDIs moderate the effects of public R&D on output.
Original languageEnglish
Pages (from-to)290-304
JournalAfrican Journal of Economic and Management Studies
Volume9
Issue number3
Online published10 Jul 2018
DOIs
Publication statusPublished - 14 Aug 2018

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 10 - Reduced Inequalities
    SDG 10 Reduced Inequalities
  2. SDG 17 - Partnerships for the Goals
    SDG 17 Partnerships for the Goals

Research Keywords

  • Africa
  • Agricultural production
  • FDIs
  • Research and development

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