Foreign agricultural investment and sustainable development in India: a granger causality analyses
Journal of Economic and Administrative Sciences
ISSN: 1026-4116
Article publication date: 14 December 2023
Abstract
Purpose
The study aims to find the synchronization between foreign agriculture investment (FAI) and Sustainable Development Goals (SDGs) related to agriculture as classified by the Food and Agriculture Organization (FAO). The study tries to find such an association in India over 2 decades from 2001.
Design/methodology/approach
The Toda-Yamamoto Granger using the M-Wald test for the non-causality procedure is applied to find the synchronization. Stationarity is tested using the Augmented Dickey-Fuller, Phillips-Perron and Kwiatkowski, Phillips, Schmidt and Shin (KPSS) tests. The Johanson methodology with MacKinnon-Haug-Michelis P-value is employed for the Cointegration test.
Findings
The empirical results indicate that the FAI Granger cause SDG2 “Zero hunger” and “Overall sustainability”, but SDG13 “Climate Change”, SDG6 “Clean water and sanitation”, SDG12 “Responsible production and consumption” and SDG15 “Life on Land” granger cause global investments. Notwithstanding, SDG5 “Gender equality” and SDG14 “Life below water” found no-way causality with FAI.
Practical implications
Host governments should prioritize sector-level sustainable development, notably agricultural SDGs, to attract global investments. Foreign agriculture investment is influenced differently by various SDGs; thus, policymakers should concentrate on specific agricultural SDGs to enhance the flow of capital into the agriculture sector. Global investors should take sustainability into account while framing foreign investment plans, and the supra-national organization may consider global agricultural investments while addressing the problems related to global food security.
Originality/value
The distinguishing feature of the study is that SDGs classified by the FAO from a global investment perspective have not been studied so far.
Keywords
Acknowledgements
The authors wish to convey their sincere appreciation to the anonymous reviewers whose meticulous and insightful comments substantially elevated the quality of this research paper. Their demonstrated expertise and commitment to academic excellence have played an instrumental role in refining the manuscript.
Citation
Bhat, M.N. and Naeem, M.H. (2023), "Foreign agricultural investment and sustainable development in India: a granger causality analyses", Journal of Economic and Administrative Sciences, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEAS-07-2023-0197
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited