The Influence of Climate Change and Foreign Direct Investment on Aquaculture: A Panel Data Approach for Top-Producing Countries

Abstract

Aquaculture production is the major subdivision of the marine industry, indicating a critical sector in global food security and economic development. The objective of the current study is to discover the impact of Climate change and Foreign Direct Investments on Aquaculture Production in 10 major producers. According to the Food and Agriculture Organization, major aquaculture-producing nations are China, India, Bangladesh, Vietnam, Indonesia, Norway, Chile, Egypt, the Philippines, and South Korea. The panel regression model was implemented to quantify the influence of the variables on Aquaculture Production in major 10 aquacultures producers’ gathered data from 1972 to 2022. To check the stability and stationery according to the major assumptions of the Ordinary Least Squared model, the Levin-Lin-Chu test, F-test, Breusch-Pagan Lagrange Multiplier test, and Hausman test were conceded from this study. Furthermore, the study was conducted to regulate the most relevant model among Pooled Ordinary Least Square, Fixed effect Model, and Random Effect Model. The findings from the descriptive statistics showed that the overall standard deviation specifies significant differences in Aquaculture Production across the preferred areas. Finally, the results shows that both climate change and Foreign Direct Investment has a significant positive impact on Aquaculture Production in top 10 producing nations.