The effect of foreign direct investment on agriculture production in Djibouti

This study experimentally investigates the effect of foreign direct investments on Djibouti's agricultural production. The researcher has chosen a sample of 34 years' worth of data collection records from 1980 to 2014 taken from Sesric's Djibouti Economic Data repository. By using fundamental correlation and deterministic models, econometric procedures are enhanced. Data have evaluatwaswere done and all variables were examined for their unit roots, and they were stationary in the first-difference model while they were non-stationary in the level model. Descriptive statistics tests, the LMS test, the data Unit root test, the ARDL model (ECM regression), the heteroskedasticity test, (Breusch Pagan Godfrey) Ramsey test, and model stability tests are also used. According to this research Agriculture production is the dependent variable while Foreign Direct Investment (FDI), labor, and capital act as the independent factors. The researcher has demonstrated in this research that foreign direct investment and the productivity of Djibouti's agricultural sector are directly linked based on the data.