IMPACT OF AGRICULTURAL EXPORT ON PERFORMANCE OF NIGERIA ECONOMY
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- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
This study examined the impact of agricultural export on performance of Nigeria economy over a 41-year period from 1970 to 2010. Specifically, the study aim to examine specific policies and programmes initiated by the government to promote the exportation of agricultural crops or commodities, ascertain the functional relationship between agricultural exports and economic growth in Nigeria, examine factors inhibiting a substantial improvement in the exportation of agricultural commodities, and suggest and recommend measures that would enhance and promote the exportation of agricultural commodities for a high and sustainable GDP. Data was collected from the Central Bank of Nigeria (CBN), World Bank, journals and publications as well as data from the Nigerian Bureau of Statistics (NBS). Four tests were employed in the analysis of the data collected, they include; test for unit root using the augmented dickey-fuller (ADF), cointegration test, Granger causality test and estimation of an error-correlation model.The findings of the study showed that agricultural exports have contributed significantly to the growth of the Nigerian economy over the past 41years. The study therefore recommendated that adequate incentives in form of accessible and cheap loans should be provided for farming in general and export crops in particular. The focus should not be mainly on reviving the dwindled fortunes of traditional export commodities, but also to target new agricultural exports and add value to traditional ones. Also, there should be a review of subsisting schemes and reformation of existing institutions to make them more supportive of farm outputs and exports. For instance, the Nigerian agricultural corporative and rural development bank(NACRDB) should be made a wholesale and retail financing institution to make its operations more efficient and self-sustaining.
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