Impact of Foreign Direct Investment on Agricultural Exports in Selected Developing Countries for the Period 1990–2019

Author : Rihal S. Qasim and Ramia A. Khalil

https://doi.org/10.37229/fsa.fja.2026.01.13

Developing countries face great difficulties in obtaining domestic capital in sufficient quantities to achieve the required level of investment to develop their economies, Therefore, these countries have tended to attract foreign direct investment and try to create an attractive investment environment by preparing the components of this environment. Foreign direct investment in developing countries plays a prominent role in raising the efficiency of the export sector. As there are products that cannot be produced without the activity of foreign companies, the presence of such companies contributes to opening global markets for the products of the industries that they establish in the countries hosting investment, which leads to an increase in exports. On this basis, this study aimed to determine the impact of foreign direct investment on the economic environment of developing countries and in a way that contributes to achieving economic development, the relationship between this type of investment and exports in these countries over a specific period of time. The research problem was embodied in the fact that developing countries suffer from obstacles and problems in attracting foreign direct investment to develop their exports. Through it, the hypothesis was formulated that the flow of foreign direct investment into the agricultural sector in developing countries contributes positively to increasing the value and volume of agricultural exports to these countries. The study covered the period (1990-2019). The study also adopted the descriptive approach to study the theoretical side, relying on economic analysis methods. As for the applied side, the quantitative statistical approach was used to reveal the causal relationship. The study reached a number of conclusions, the most important of which was that the results showed the existence of a positive, statistically significant relationship between foreign direct investment and agricultural exports, which indicates that increasing... FDI of 1% leads to a modest but statistically significant increase in agricultural exports of 0.025%. There was no direct relationship between foreign direct investment and agricultural exports in Jordan. The two researchers recommended that policies to attract foreign direct investment in the agricultural sector should be tailored to each country separately, taking into account the economic, social and political conditions of each country, as well as studying local factors and conducting detailed studies to determine the local factors that affect foreign direct investment and agricultural exports in each country.

Keywords : Foreign Direct Investment, Chitosan, Agriculture, Exports,

Received:11/20/2025 12:00:00 AM; Accepted: 12/21/2025 12:00:00 AM