A Time Series Analysis of China’s Foreign Direct Investment on Senegal’s Agriculture

Abstract

Since 2000 China has started to strengthen its agricultural co-operation with Africa in trade and other commercial activities. China has increased its agriculture investment in Africa, because of the rapid economic rise of China in many African developing countries. China's investment has developed and opened many opportunities against a backdrop of closer economic ties with many African countries and particularly in Senegal. The purpose of this study was to analyse the times series analysis impact of China's FDI in Senegal's agriculture. The study mainly used secondary data that are collected from the World Bank and IMF for 22 years between 1990 and 2012. The descriptive and econometric model was used to analyse the collected data. Although agricultural growth has increased in Senegal in recent years, food security remains a severe challenge. Despite international and local concerns, China's investment in Senegal in infrastructure and agricultural technology and training could facilitate agricultural growth in Senegal. A time series data is used to get the empirical results for our paper, and the estimation's results show that China's FDI is an important element in Senegal's agriculture will increase employment creation, high productivity, access to the finance and markets for smallholders, technology transfer enforcement of production standards, and farmers can access more to bank credit.