Economic development by the foreign direct investment in agriculture sector
2017
Jednak, Sandra (Faculty of Organizational Sciences, Belgrade (Serbia)) | Parežanin, Miloš (Faculty of Organizational Sciences, Belgrade (Serbia)) | Kragulj, Dragana (Faculty of Organizational Sciences, Belgrade (Serbia))
High productivity, income and employment are usually associated with industry and service sectors. However, the agriculture sector is considered a significant contributor and driver for enhancing economic growth and development. Starting economic progress country first sets the goal of agriculture development which is later followed by industry development. Agriculture contributes economic development in different ways like obtaining integrates and raw materials for other sectors. It is essential for developing countries to have lack of capital and technology. The aim of the paper is a discussion about possibilities of economic development based on FDI in the agriculture sector. Research questions are: how agriculture contributes growth and development, which determines could attract FDI in the agriculture sector, and does FDI inflows in agriculture sectors influence increase of agriculture products export. The analysis and discussion are based on macroeconomic and agriculture performances and indicators. The theoretical overview and analysis show that the agriculture has the significant role in development, particularly in developing countries. However, how the economy expands the importance of agriculture decreases. Furthermore, determinates of attracting FDI are macroeconomic stability, taxes, trade and financial liberalization and openness. Finally, some countries, particularly developing countries, have increased the export of agriculture products.
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