Agricultural Export And Economic Growth In Nigeria: Disaggregated Analysis

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 6

Year of Publication : 2020

Authors : Akinlolu Agbara Olojede, Nejo Femi Michael

10.14445/23939125/IJEMS-V7I6P104

How to Cite?

Akinlolu Agbara Olojede, Nejo Femi Michael, "Agricultural Export And Economic Growth In Nigeria: Disaggregated Analysis," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 6, pp. 27-33, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I6P104

Abstract:

Agricultural export has been a major source of foreign earnings for decades in Nigeria. The relationship between agricultural export and economic growth has been outlined in several other studies, but disagreements still persist. Previous studies failed to specifically consider cocoa, groundnut and oil palm, which are consistent components of agricultural export. Therefore, this study employed time-series data from the Central Bank of Nigeria statistical bulletin and National Bureau of Statistics to examine the nexus between disaggregated agricultural export and economic growth for the period of 1981-2018. Specifically, the paper examined the causal relationship between the disaggregated agricultural export and economic growth. The study adopted the Ordinary Least Square and granger causality as its major analytical tool to analyze its objectives. The OLS result showed the existence of a strong long-run relationship between cocoa, oil palm and economic growth. Also, the granger causality result showed a uni-directional causality that runs from oil palm and cocoa export to economic growth. Therefore, agricultural export has a significant effect on Nigerian Economic Growth. The paper recommended increased government budgetary on the cultivation of oil palm and cocoa. Grants and incentives should be given to farmers to encourage them.

Keywords:

Nigeria, Economic Growth, Oil palm, Groundnut, Cocoa.

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