DYNAMIC PANEL INVESTIGATION OF LINKAGES BETWEEN FDI, ICT AND AGRICULTURE PRODUCTIVITY IN SEVENTY (70) HETEROGENOUS ECONOMIES

Abstract

This study examines the linkages between Foreign Direct Investment (FDI), Information and Communication Technologies (ICT), and Agriculture productivity (AR) in countries with varied levels of growth spanning the period 2000-2020. We examine the effect of Information and Communication Technology (ICT) and agriculture on territorial attractiveness of FDI in host economies. A global panel of 70 economies have been divided into three sub-panels (upper income, upper-middle income, and lower-middle income). Using the Generalized Method of Moments (GMM) estimator framework, we found that these variables have relationships with one another in the long-run. The causal direction differs across panels with different levels of relevance. The empirical investigation should be of particular interest to academia and policymakers in both developed and developing economies. The study proves the major influence of ICT and agriculture on economic augmentation of host countries through their impactful contribution to improve foreign direct investment attractiveness. Furthermore, the results confirm the influential role of agriculture and ICTs in supporting economic development by reinforcing countries’ economic openness as well as enhancing their participation in global trade.