Foreign Direct Investment Inflow and Agricultural Sector Productivity In Nigeria (original) (raw)
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Journal of Agricultural Science, 2013
The study analyzed the budgetary allocations to the agricultural sector in Nigeria. The mean difference test, percentages and trend analyses were used to compare the allocations by the Federal and State levels of government. Results show that there was instability in the way budgets were allocated to the agricultural sector, and there was no significant difference between the allocations made to the sector by the federal and state levels of government. The study recommends that the government at all levels should ensure stability and increment in allocation to the agricultural sector to promote growth and development of the sector. The government should ensure proper monitoring and effective service delivery with regards to allocations to the agricultural sector, while farmers should ensure efficient use of allocated resources for agricultural development. Government should also ensure proper implementation of suitable agricultural policies that would promote increased investments and productivity in the sector.
ABSTRACT This study empirically examined the effects of government expenditure on agriculture and its contribution to economic growth in Nigeria over the period (1989-2014). The main objective of this study was to analyze the relationship between government expenditure on agriculture and economic growth in Nigeria from 1989-2014. This study used secondary source of data, which span for 25 years. Moreover, Fully Modified Ordinary Least Square (FMOLS) method of data analysis was used in evaluating the secondary data. Real GDP was used to proxy economic growth, while agricultural output, government expenditure on agriculture and central bank loan were used as indicators of government expenditure on agriculture. From the findings, agricultural output and Real GDP are positively related, government expenditure on agriculture and Real GDP are positively related, and central bank loan and Real GDP are positively related. Findings revealed that positive relationship exist between central bank loan and Real GDP but it is not significant due to problems like mismanagement, lack of monitoring, diversification of funds and others. Findings further revealed that increased government expenditure on agriculture has not really transformed to large economic growth as the share of the sector to GDP is little. Therefore, the study recommends that it is imperative for the country to develop its agricultural sector through sufficient government spending and monitoring so that there can be increased and sustained economic growth. It also emphasizes on the need to pay more attention to farmers, improve and provide infrastructures, accord a priority to the sector in budget allocation, enthrone adequate and appropriate extension services. The Central bank of Nigeria should also come up with a stable policy for loan disbursement to farmers at a reasonable interest payback so that the sector can obtain its right share towards economic growth. Keywords: Government Expenditure, Agriculture, Economic Growth
Impact of Foreign Direct Investment on Nigeria’s Agricultural Sector (1981 to 2019)
International Journal of Environment, Agriculture and Biotechnology
The need to augment the financial policy interventions of the Central Bank of Nigeria in the agricultural sector is sine qua non. Since agriculture is still the mainstay of Nigeria’s economy, its reliance on foreign direct investment (FDI) ought to be ascertained. Consequently, this study investigated the impact of foreign direct investment on Nigeria’s agricultural sector. Time series data between 1981 and 2019 were obtained from the databases of the Central Bank and Food and Agriculture Organisation. The Augmented Dickey-Fuller test shows that the variables were I(1). Johansen’s co-integration test suggested long-run relationship among the variables. Findings revealed slower acceleration of agricultural productivity (6.28) than FDI (17.99). Also, FDI and exchange rate had statistically significant (p < 0.05) and negative impact on the agricultural productivity, while implicit price deflator for the agricultural sector had statistically significant (p < 0.001) and positive im...
Total Government Spending On Agriculture and Its Output Growth in Nigeria
American Based Research Journal, 2019
This study examined the relationship between government spending on agriculture and its output over the period 1970-2015 using Engle-Granger (1987) two step modeling (EGM) procedure involving: cointegration analysis and error correction of parameter estimates. Additionally, Granger causality test was carried out to determine the direction of causation between government spending on agriculture and agriculture sectors output. Based on the data analysis, it was discovered that Total government spending on agriculture (TGSA) has significant effect on agriculture output (AGDP) in the long and short-run.; this relationship is statistically significant in the long run and in the short run. Spending on agriculture sector has the capacity to increase its output by 10.7% if the allocation increases by 1% in the long run while in the short run, one percent increase in government expenditure on agriculture will bring about 10% increase in agriculture output. The study concludes that public expenditure is very crucial instruments for economic growth at the disposal of policy makers in Nigeria and government expenditure on agriculture is basically related to agricultural development and recommends that efforts should be made to increase government funding on agricultural sector and also compliment it with stable macroeconomic policies in order to curtail the level of food shortage and overdependence on foreign food and as well increase funding on anti-graft or anti-corruption agencies like the Economic and Financial Crime Commission (EFCC), and the Independent Corrupt Practices Commission (ICPC) in order to arrest and penalize those who divert and embezzle public funds.
Using secondary data generated from the Abia State Agricultural Development Programme, National Root Crops’ Research Institute Umudike in Abia State and the Central Bank of Nigeria, the determinants of agricultural production in the State were examined. The Ordinary Least Squares (OLS) regression analysis was applied to the data. Result show that total land area cropped, total annual rainfall and total population were strong factors that significantly determined total crop output in the state at 1% level. Whereas the total land area and total annual rainfall were positive in their signs, the total population was negative. Government therefore need to do more to ensure that insufficient food that the rapidly growing population would depend on is addressed. Government spending on agriculture would need to be revisited in terms how the fund is applied to ensure that it meaningful affect the rural agrarian economy. Keywords: Crop output, Determinants, Government funding, Abia State
Financing Agricultural Development in Nigeria: Issues and Challenges
Scholars Journal of Economics, Business and Management, 2015
The importance of finance to agricultural development cannot be overemphasized. Owing to the fact that the agricultural sector is an important engine of National economic growth, the Federal Government has embarked upon series of programs and policies to transform the productive capacity of the sector. But the sector's performance remains skimpy. The aim of this study is to ascertain the factors bedeviling financing the agricultural sector. This study employed a content analysis method of research and used a literature based method for analysis. It was found among others that; low level of monitoring and evaluation of financial policies, inadequate qualified personnel to manage financial resources devoted for agricultural investment, policy inconsistency and corruption are the main obstacles to the success of financial commitments to the agricultural sector. The paper recommends that government should ensure effective monitoring and evaluation of agricultural policies instead of formulating new ones and corruption should be fettered.
Effect of Government and Private Sector Financing on theAgricultural Sector in Nigeria
2018
The process of economic transformation and development calls for the participation of all interest groups in an economy hence this study set out to examine the effect of public and private sector finances on the development of the agricultural sector in Nigeria. The study employed an econometric procedure with the Ordinary Least Square regression technique. R-squared of 0.9921, obtained implied that 99.2 per cent of the variation in the agricultural sector real gross domestic product was explained by the six independent variables in the model. Loan granted to farmers under the agricultural credit guarantee scheme, commercial banks’ credit to the agricultural sector and Federal Government recurrent expenditure allocated to the sector impacted it positively, while the Federal Government capital expenditure allocated to the sector did not. It is recommended that all the policies put in place by the Monetary and Fiscal Authorities to encourage flow of funds to the agricultural sector be...
Role of Development Finance Institutions in Developing the Nigerian Agricultural Sector
This study investigates the role of development finance institutions (DFIs) in agricultural sector development in Nigeria. African Development Bank (AfDB), World Bank and International Development Association (IDA) were the underlying DFIs while agriculture value added formed the basis for measuring agricultural sector development. Data on the variables were sourced from World Development Indicators (WDI) and analyzed using error correction mechanism (ECM). The unit root test results indicate that all the variables are not stationary. However, they become stationary after first differencing and as such they all integrated of order one. The cointegration test results revealed that the variables have long run relationship. The result showed that the first and second lag of agriculture value added impacted negatively on its current. One-period lag of AfDB loan has significant positive relationship with current value of agriculture value added. The result showed that agriculture value added increased by 0.079 percent due to 1 percent increase in lag of AfDB loan. It was also found that the lagged values of World Bank and IDA loans exert significant negative impact on agriculture value added. The Parsimonious ECM revealedthat the model has an adjustment speed of 59.2 percent. Based on the findings, it is recommended that policymakers should prioritize the allocation of AfDB loans into productive sectors of the economy with particular emphasis on agriculture with a view to driving the development process in the real sector.
Effects of Government Expenditure on Agricultural Growth in Nigeria
2016
The study examined the effects of government expenditure on agricultural growth in Nigeria from the period of 1980 to 2014. This study was carried out against the background of the gradual decline in the agricultural sector output, which was largely due to rise in crude oil revenue in the early 1970s. The objectives of the study are: To determine the trend of public agricultural expenditure in Nigeria from 1980 and 2014; and also to examine the impact of public expenditure on agricultural output in Nigeria. To achieve these objectives, the study adopted Multiple Regression using time series data obtained from the CBN, NBS and FMA for a period of 35 years that is 1980 to 2014. In this study, the dependent variable was the value for agricultural output, whereas the independent variables are the Public Agricultural Expenditure, Commercial Bank Loan and Advances on Agriculture; and Real Interest Rate. The model was tested using Descriptive statistics, Durbin Watson Statistics to analyse the significant relationship between the dependent and independent variables. The result shows that government expenditure on agriculture exerts positive insignificant impact on agricultural output. This implies that increase in the public expenditure on agriculture and commercial bank loans and advances on agriculture in the country though often lead to increasing agricultural output, but such increase is not significant enough. The study also revealed a significant negative relationship between the real interest rate and agricultural output in Nigeria during the period. The study thereby recommends that; government should increase the fraction of its budget that goes to the agricultural sector; regulatory authorities in the financial market should work out modalities for provision of adequate loans and advances to farmers; and lastly, Government should also streamline the monetary policies of the country to keep close check on the real rate of interest so as to reduce the deleterious influence.