+234 813 0686 500
+234 809 3423 853

Macroeconomic determinants of Agricultural Sector Growth in NIgeria

  • Type:Project
  • Pages:82
  • Format:Microsoft Word
(Economics Project Topics & Materials)



The study examines the macroeconomic determinants of agricultural sector growth in Nigeria which is based on the empirical evidence of the short-run and long-run interrelationships among capital expenditure on agriculture, inflation rate, exchange rate, interest rate and credit availability to the sector using agricultural GDP as dependent variable. Time series data from 1981 – 2015 were sourced from Central Bank Statistical Bulletin. The data were analysed based on bound test form of cointegration and Auto Regressive Distributed Lag model was used to investigate the nature of the relationship among the macroeconomic determinants affecting Agricultural sector growth in Nigeria in the short run and long run.

            The result of the bound test implies that there is a cointegration (long run relationship) between agricultural sector growth, interest rate, exchange rate, inflation rate, government expenditure on agricultural sector and credit to agricultural sector from commercial banks and therefore, the null hypothesis of no cointegration between the variables is rejected and the alternative hypothesis is accepted. The ARDL shows all the variables have negative relationship with agricultural sector growth while credit available to agriculture has a positive relationship with the Agricultural sector growth in the short run. In the long run, the nominal exchange rate has a positive relationship with agricultural sector growth while other macroeconomic variables have a negative relationship with agricultural sector growth

                It is therefore recommended that the Nigerian government should double its efforts in designing sector-specific agricultural policies that will facilitate improvement in the quality of the institution, long-term sustainable government expenditure in agriculture, maintenance of favourable exchange rate and commercial banks’ credit accessibility to farmers at low interest rate. These will act as incentives to farmers for increased agricultural production in Nigeria which will lead to the growth of the Agricultural sector.





CONTENTS                                                                                       PAGE

Title page                                                                                                                                i

Dedication                                                                                                                              ii

Certification                                                                                                                            iii

Acknowledgement                                                                                                                  iv

Abstract                                                                                                                                  v

Table of contents                                                                                                                    vi


1.1       Introduction to the study                                                                                            1

1.2       Statement of the problem                                                                                           2

1.3       Research Questions                                                                                                     4

1.4       Objectives of the study                                                                                               4

1.5       Justification of the study                                                                                            4

1.6       Scope and Limitations of the study                                                                            6

1.7       Organization of the study                                                                                           6


2.0       Introduction                                                                                                                7

2.1       Trend Analysis of Agricultural Sector Output in Nigeria                                           7

2.2       Trend Analysis of Interest Rate in Nigeria                                                                 8

2.2.1    Interest Rate Policy in Nigeria                                                                                    9

2.3       Trend Analysis of Exchange Rate in Nigeria                                                             9

2.3.1    Exchange Rate Policy in Nigeria                                                                                11

2.4       Trend Analysis of Inflation rate in Nigeria                                                                 12

2.4.1    Inflation rate in Nigeria                                                                                              12

2.5       Trend Analysis of Government Recurrent Expenditure on Agriculture                     13

2.5.1    Government Expenditure Programmes and Policies on Agriculture                          14

2.6       Trend Analysis of Credit to Agricultural Sector                                                        16

2.6.1    Credit Guarantee Schemes in Nigeria                                                                         17

2.7       Summary of the background to the study                                                                  19




3.1       Introduction                                                                                                                21

3.2       Theoretical Review                                                                                                     21

3.2.1    The Solow-Swan neoclassical growth theory                                                             21

3.2.2    Endogenous Growth Theory                                                                                      22

3.2.3    Rostow’s Theory of Economic Growth                                                                      22

3.2.4    Wagner’s Law                                                                                                             23

3.2.5    Export growth theory                                                                                                 24

3.3       Methodological Review                                                                                              26

3.3.1    Method Employed in the Studies                                                                               26

3.3.2    Summary of the Methodological Review                                                                   27

3.4       Empirical Review                                                                                                        28

3.4.1    Summary of Empirical Review                                                                                   34

3.4.2    Gaps in the Literature and the Contributions of the Study                                        35


4.0       Introduction                                                                                                                36

4.1       Theoretical framework                                                                                                36

4.2       Model Specification                                                                                                    39

4.3       Methodological framework                                                                                        40

4.4       Scope and Sources of Data                                                                                         42


5.1       Descriptive Analysis                                                                                                   43

5.2       Unit Root Test                                                                                                                        44

5.3       ARDL Bounds Test for Cointegration                                                                       46

5.4       Estimated Short run and Long run relationship                                                          47


6.1       Summary                                                                                                                     51

6.2       Conclusion                                                                                                                  52

6.3       Recommendations                                                                                                      52






REFERENCES                                                                                                                    54


Figure 1           Contribution of agricultural sector to GDP in Nigeria                                   8

Figure 2           Interest rate trend in Nigeria                                                                           9

Figure 3           Exchange rate trend in Nigeria                                                                       10

Figure 4           Inflation Rate trend in Nigeria                                                                       12

Figure 5           Government Recurrent Expenditure on Agriculture in Nigeria                      14

Figure 6           Credit to Agricultural Sector trend from Commercial Banks                         17


Table 5.1         Result of Descriptive test                                                                               44

Table 5.2.1      Result of Augmented Dickey Fuller Test                                                       45

Table 5.2.2      Result of Phillips-Perron Unit Root Test                                                       46

Table 5.3         Result of Bounds test                                                                                    47

Table 5.4.1      Result of Short-run Model                                                                           49

Table 5.4.2      Result of Long-run Model                                                                             50


APPENDIX ONE                                                                                                                

APPENDIX TWO                                                                                                               

APPENDIX THREE                                                                                                           

APPENDIX FOUR                                                                                                             




Macroeconomic determinants of Agricultural Sector Growth in NIgeria

Share This


Type Project
Department Economics
Project ID ECO0757
Price ₦3,000 ($20)
No of Pages 82 Pages
Format Microsoft Word

Leave a comment...


    Type Project
    Department Economics
    Project ID ECO0757
    Price ₦3,000 ($20)
    No of Pages 82 Pages
    Format Microsoft Word

    Related Works

    ABSTRACT The study investigates in an empirical pattern, the macroeconomic determinants of stock prices in Nigeria, using a time series estimation technique, essentially, the Granger Causality testing and the cointegration and error correction methods. Moreover, quarterly time series... Continue Reading
    (A CASE STUDY OF UNION BANK, ENUGU BRANCH) CHAPTER ONE INTRODUCTION 1.1      Background of the Study Every nation aspires to develop its urban and rural areas. Policies are formulated to ensure the achievement of the overall development of the nation. For instance, in... Continue Reading
    Abstract The analyses the relationship between Agricultural resource and economic growth in Nigeria. The chi-square statistics was used in analyzing the data obtained for the study. The results revealed a positive cause and effect relationship between gross domestic product (GDP) and... Continue Reading
    ABSTRACT The purpose of this study was to determine the impact of Agricultural sector on economic growth of Nigeria within the period of 1990-2008. (Nineteen years period). The study was a secondary data research in which I adopted multiple regression models as my tool of analysis. The OLS was the estimation technique. From the analysis, the... Continue Reading
    The Role Of Agricultural Sector As An Accelerator For Economic Growth In Nigeria ABSTRACT The development of agriculture since 1960 and its contribution to the growth of the economy has been discussed in the course of this study. It is however obvious from the analysis that though agriculture has contributed positively to economic growth, there... Continue Reading
    ABSTRACT This research work investigates the Roles of Agricultural sectors on Economic Growth and Development in Nigeria using the multiple regression analysis method. The data utilized spanned between 1981 - 2010. The research work analyses and describes the past methods of agricultural development In Nigeria and this helps to know the... Continue Reading
    ABSTRACT This research work tries to investigate the effectiveness of macroeconomic policy in promoting economic growth in Nigeria. Macroeconomic policies, which is defined as government actions designed to affect the performance of the economy as a whole.  Data used in this research (GDP, government expenditure, money supply) was mainly... Continue Reading
    AN APPRAISAL OF THE FINANCIAL CONTRIBUTION OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE GROWTH OF AGRICULTURAL SECTOR OF NIGERIA. ABSTRACT The researcher interview to identifying and appraise the financial contribution o f the international bank for reconstruction and development to the growth of the agricultural sector of... Continue Reading
    ABSTRACT The researcher interview to identifying and appraise the financial contribution o f the international bank for reconstruction and development to the growth of the agricultural sector of Nigeria. Chapter one of this study will contain introduction which includes background of study statement of the study objective of the study significance... Continue Reading
    DETERMINANTS OF  CORPORATE TAX AGGRESSIVENESS IN NIGERIA MANUFACTURING SECTOR ABSTRACT The broad objective of this research paper was to investigate the determinants of corporate tax aggressiveness in Nigeria manufacturing sectors. The specific objectives were: to investigate if there is any significant relationship between tax aggressiveness and... Continue Reading
    Call Us
    Get this work
    whatsappWhatsApp Us