The Impact of Foreign Direct Investment on Agricultural Trade in Africa: Does Political Stability Matter?

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Foreign direct investment significantly boosts agricultural trade in Africa, emphasizing its economic importance.
Political stability enhances agricultural trade outcomes, highlighting the need for stable governance.
The gravity model along with Poisson pseudo maximum likelihood technique was applied to analyze trade data across 54 African countries.
Boosting foreign direct investment may lead to increased agricultural production and trade, supporting regional economic growth.

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Analysis shows positive correlation between foreign direct investment and agricultural trade in Africa, suggesting political stability is critical.

Didongo et al. (2025) studied this question.

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Analysis shows positive correlation between foreign direct investment and agricultural trade in Africa, suggesting political stability is critical.