Impact study of agricultural value added on foreign direct investment, economic development, trade openness for India following ARDL approach

Figures & data

Figure 1. FDI relationship.

Table 1. Classification of recent literature on FDI in India

Cluster 1: Studies that identify the determinants of FDI	Cluster 2: Studies that identify the impact of FDI	Cluster 3: Studies identifying the spillovers of FDI upon different sectors	Cluster 4: Comparative studies about FDI receiving VS domestic firms	Cluster 5: Sector-specific effects of FDI	Cluster 6: Studies related to agriculture/primary sector and FDI
Wagner and Delios (2023), Joo and Shawl (2023), Hartmann and Spruk (2023), Wannisinghe et al. (2023), Goswami (2023), Nadig and Viswanathan (2023), Bildirici and Çoban Kayıkçı (2023).	Asteriou & Jefferies, (2023, Uddin et al., (2023), She & Mabrouk, (2023), Tripathy et al., (2023), Kumari et al., (2023), Roy, 2023, Yoganandan & Vasan, (2022).	Sarkar & Lai, (2009), Ahmed & Kialashaki, (2023), Roy & Paul, (2022), Friedt & Toner-Rodgers, (2022), Verma et al., (2022).	Saikia, (2022), Sharmiladevi, (2022), Ramachandran et al., (2020), Arora & Lohani, (2017), Kuntluru et al., (2008).	Mehta et al., (2023), Aktaş & Gattai, (2023), Ganai et al., (2023), Bhat et al., (2023), Fujimori et al., (2020); Ghosh, (2016)	Chaudhary (2016), Kaur et al. (2022), Glady (2019), Emir et al. (2022), Naseem et al. (2021)

Source: Prepared by author.

Table 2. ARDL bound test results

Model	99% critical values
LnAVAt = f (LnIFDIt, LnGDPt, LnTOPt)	Lower bound	Upper bound	F-Stat
Null Hypothesis No long-run relationship β1=β2=β3=β4 No short-run relationship Ø1=Ø2=Ø3=Ø4	3.74	5.06	6.947**

Note(s): ** indicates 1% statistical significance level.

Source: Authors’ calculations from Eviews.

Table 3. Long-run coefficient estimates

Independent variables	Coefficient (standard error)	t stat (prob)
IFDI	−0.035(0.017)	−2.03(0.06)
GDP	0.529(.0.035)	14.85(0.00)
TOP	−0.00(0.00)	−6.38(0.00)
FDIN	−0.035(0.01)	−2.03(0.06)
R-Square 0.74Adjusted R-Square 0.70Durbin Watson Stat−1.92F Stat 16.76Prob (F-Stat) 16.76Normality [Jarque-Bera] 1.297Heteroskedasticity test Breusch-Pagan-Godfrey (p-value) 0.287Ramsey RESET test [F-statistics] 0.986

Source: Authors’ calculations from Eviews.

Figure 2. CUMSUM.

Figure 3. CUMSUM sum of squares.

Table

Variable Description	Variable Representation	Description
Agriculture Forest & Fishing Value added	AVA	Agriculture Forest & Fishing Value added (constant 2015 US$)
Agglomeration	IFDI	Foreign direct investment, net inflows (% of GDP)
Economic Growth	GDP	GDP Constant 2015 US$
Foreign direct investment net FDI	NFDI	Foreign direct investment net (BOP Constant US$)
Trade Openness	TOP	Exports added to imports and divided by GDP

Table

Variables	At Level	At First Difference
AVA
Constant	0.385(0.977)	-4.975(0.00)
Constant & Linear	-3.449(0.07)	-4.562 (0.00)
None	4.360 (0.999)	-3.628 (0.00)
FDIN
Constant	-1.195(0.656)	-6.258 (0.000)
Constant & Linear	-2.534(0.310)	-6.200(0.000)
None 0.999	1.140(0.928)	-5.923(0.000)
GDP
Constant	-0.880(0.774)	-4.614 (0.00)
Constant & Linear	-1.687 (0.722)	-4.700 (0.00)
None	8.042 (1.00)	-0.710 (0.395)
IFDI
Constant	-2.372 (0.160)	-5.133(0.00)
Constant & Linear	-2.202 (0.465)	-5.073 (0.002)
None	-1.329 (0.164)	-5.254 (0.00)
TOP
Constant	-0.243(0.918)	-4.561(0.00)
Constant & Linear	-0.800 (0.950)	-5.113 (0.00)
None	-0.996 (0.276)	-4.463 (0.00)

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