Foreign Direct Investment (FDI) in Agriculture Implication into Emerging Country Change and Socio-Economic Development

Abstract

Foreign direct investment (FDI) has been used as a strategy in emerging countries which made a tremendous change in their economy. However, lack of study have been undertaken to know how these change can have contributed the country poverty alleviation and economy growth. Therefore, looking to fulfil the research gap, this paper aimed to seek how FDI implication in agriculture development through as job creation, taxes payment, transfer of knowledge and technology contribute the country poverty alleviation. The Lao People's Democratic Republic was used as a case study and a sample of 450 respondents were collected through a survey questionnaire by self-administrated (face to face with interaction with the participant). The results shown that FDI implication in agriculture development through FDI job creation, FDI taxes payment have a strong impact on poverty alleviation but with weak effect at long-term, however, FDI transfer of knowledge and technology have a weak impact on poverty alleviation though with greater significance at long term. Transfer of knowledge and technology is the significant asset needed for emerging economy from FDI to boost change and contribute to their economy growth.

Nexus Between FDI, Agriculture, and Rural Development: Evidence from Asian Countries

“…Foreign direct investment has been utilized as a strategy in rising nations that have created a real shift in their economies, according to Douansouvanh, Qijun, and Kombate (2019). However, no research has been done to determine how these changes have helped the country's poverty reduction and economic growth.…”