Do Japanese Foreign Direct Investment and Trade Stimulate Agricultural Growth in East Asia?
Author InfoSattapon, Weerapong Abstract The agricultural sector is an important sector that most people in East Asia rely on and growth in this sector may help to lift their standard of living. This study assessed what factors contributed to agricultural growth by applying the panel econometric approach. First, the long-run relationship between the agriculture growth and its explanatory variable was investigated by applying the IPS unit root test and Pedroni panel cointegration test. The results indicated that all variables showed an integration of order unity, and showed strong evidence to support the existence of long-run relationship. The results from Fixed Effect (FE) regression indicated that imports, exports and trade liberalization were the important factors that contributed to growth in China, Malaysia, Indonesia, Philippines, and Thailand. Thus, promoting trade policy in these countries would stimulate the agricultural growth. In contrast, only imports and trade liberalization
