Agriculture, forestry, and fishing play a crucial role in strengthening the country’s economic development, particularly in supporting industries, and have evolved in Africa in recent years. This study aims to analyze the impact of foreign direct investment on agriculture, forestry, and fisheries in 5 Eastern African countries (Djibouti, Ethiopia, Kenya, Rwanda, and Tanzania). Using the panel dataset on the 5 Eastern African countries selected for the period 2013 to 2022, we employ the panel data regression method, more specifically, the fixed-effect panel model. For the empirical analysis, correlation analysis and Granger Causality are also employed to analyze the relationship between the variables present in this study. Using the Granger Causality test result, the study highlights that there is a one-way relationship between foreign direct investment and agriculture, forestry, and fisheries. The results of the study reveal that foreign direct investment has a positive impact on agriculture, forestry, and fisheries. Furthermore, findings suggest that capital formation, export trade, and government spending have a positive impact on agriculture, forestry, and fisheries. Therefore, it is recommended that East African governments take the necessary steps to strengthen and attract foreign direct investment, which can improve the agriculture sector and achieve sustainable economic development.
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