Contribution of Agriculture to the Development of the Nigerian Economy
Abstract
Inspite of the fact that the agricultural sector has the potential to contribute significantly to the development of the Nigerian economy, the performance of the economy over the years has not been satisfactory. This study therefore examined the contribution of the agricultural sector to economic development in Nigeria. Specifically, the study investigated the impact of crop production, livestock, fishery and forestry outputs on economic development proxied by per capita income which is measured in terms of per capita real gross domestic product in Nigeria. The analytical techniques applied include Augmented Dickey Fuller (ADF) unit root test, Autoregressive Distributed Lag (ARDL) approach, error correction model (ECM) and Granger causality test. Annual time-series data from 1981 to 2020 were used for the study. The findings indicated that crop production and forestry outputs make strong contribution to the development of the Nigerian economy while the outputs of livestock and fishery make insignificant contribution to economic development of Nigeria. The Granger causality test indicated bidirectional causality between crop production output and economic development and a unidirectional causality from livestock output to economic development. To improve the contribution of agriculture to the development of the economy, it is recommended, among other things, that the government should increase its budgetary allocation to the agricultural sector while providing subsidized agricultural inputs to farmers.
Keywords: Agriculture; Economic Development; ARDL
Metadata Record
References 28
- Akpakpan, E. B. (1999). The economy: Toward a new type of economics. Belport Publishers.
- Anyanwoucha, R. A. I. (2006). Fundamentals of economics for senior secondary school s. African First Publishers Limited.
- Anyanwu, A.C., Oyefusi, A., Oaikhenan, H., & Dimowo, F. A. (1997). The structure of the Nigerian economy (1960-1997). Joanee Educational Publishers Ltd.
- Awoyemi, B. O., Afolabi, B., & Akonmolafe, K. J. (2017). Agricultu ral productivity and economic growth; Impact analysis from Nigeria. Scientific Research Journal, 5(10), 1-7
- Ayinde, O. E. (2008). Empirical analysis of agricultural growth and unemployment in Nigeria. African Journal of Agricultural Research, 3(7), 465-468.
- Dorosh, P. A., & Mellor, J. W. (2013). Why agriculture remains a viable means of poverty reduction in sub -Saharan Africa: The case of Ethiopia. Development Policy Review, 31(4), 419-441.
- Ekpo, A. H., & Umeh, O. J. (2013). An overview of the Nigerian econ omic growth and development. www.onlinenigeria.com/economics.
- Emeh, E. O. (2017). Impact of the agricultural sector on economic growth of Nigeria 1984 -2015. International Journal of Agriculture and Earth Science, 3(8), 31-46.
- Jacquet, P., Pachauri, R. K., & Tubiana, L. (2012). A planet for life: Towards agricultural changes? The Energy and Resources Institute (TERI).
- Lawal, A. I. Asaley, A. J., Iseolorunkanmi, J., & Popoola , O. R. (2018). Economic growth, agricultural output and tourism development in Nigeria: An application of the ardl bound testing approach. Journal of Environmental Management and Tourism, 9(4), 786-794. https://doi.org/io.14505/jemt.v9.4(28)-12
- Mireri, P. C. (2013). Assessment of the contribution of urban agriculture to employment, income and food security in Kenya: A case of Kisumu Munipality. African Journal of Agricultural Research , 8(23), 2884-2896.
- Moseman, A. H (1970). Building agricultural research systems in the developing nations. Macmillan.
- Muhammad, A. H., Mairiga, T. H., Thompson, I. A., & Bello, U. T. (2020). The role of agriculture in the diversification of the Nigerian economy (1980-2016). Bullion, 44(2), 44-63.
- Ogbalubi, L. N., & Wokocha, C. C. (2013). Agricultural development and employment generation. The Nigerian experience. Journal of Agriculture and Veterinary Science, 2(2), 60-69.
- Ogbanga, A. (2018). Agricultural developmen t and employment generation in Nigeria. International Journal of Advanced studies in Ecology, Development and Sustainability 5(1), 1-22.
- Ogunjinmi, O. O. (2021). Assessing the agricultural growth potentials of Nigeria: What role has agriculture public finance played? International Journal of Economics and Business Management, 7(2), 102–114.
- Oguwuike, W. T. (2018). Effect of agricultural output on economic growth in Nigeria (1981 -2016). International Journal of Advanced Studies in Ecology, 5(1), 39-53.
- Oladotun, L. A. (2017). Agriculture as an accelerator for Nigeria economic sustainable development. Nigerian Journal of Management Sciences, 6(1), 295-307
- Oyetade, O. O., & Adeyeye, O. (2021). Impact of agricultural output and economic growth in Nigeria: Applic ation of numerical prediction and econometric analysis. Turkish Journal of Computer and Mathematical Education, 12(12), 1793–1801.
- Ruttan, V.W. (1977). Induced innovation and agricultural development. Food policy, 2(3), 196 -202.
- Salako, M. A., Lawrence, A . Aremu, Y. S., & Egbekunle, S. O. (2015). Agriculture, economic growth and development nexus: Var variance decomposition evidence from Nigeria. International Journal of Economic, Commerce and Management, 3(6), 460 -478.
- Schultz, T. W. (1964). Transforming traditional agriculture. New Haven.
- Stakman, E. C., Bradfield, R., & Mangelsdorf, P. C. (1967). Campaigns against hunger. Cambridge Press.
- Temin, P. (1999). The industrialization of New England, 1830 -1880. National Bureau of Economic Research (NBER). Historical Paper NO. 114.
- Todaro, M. P., & Smith, S. C. (2011). Economic development (11th Ed.). Pearson.
- Udemezue, J. C., & Osegbue, E. G., (2015). Theories and models of agricultural development. Annals of Review and Research, 1(5), 134-137.
- Uma, K. E., Eboh , F. E., & Obidike, P. C. (2013). Appraisal of the influence of agriculture on economic growth: Empirical evidence from Nigeria. IOSR Journal of Economics and Finance, 1(1), 73-79.
- Wilson, G. (2002). Development economics: A concise text. Pearl Publishers.