THE IMPACT OF AGRICULTURAL OUTPUT ON THE NIGERIAN ECONOMY

PROJECT INFORMATION

Format: Ms Word /  Chapters: 1-5 /  Pages: 80 /  Attributes: Questionnaire, Data Analysis

ABSTRACT

 This study has attempted to measure the impact of agricultural output on economic growth. The study made use of secondary data from 1970-2016 sourced from various CBN publications and with the use of the ordinary least squares regression procedure, our estimates were determined. The empirical analysis carried out confirmed that agriculture has contributed positively to economic growth. 

            The model employed is adopted along the Robert Solow model based.  

 

 

 

 

 

 

 

 

 

 

 

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TABLE OF CONTENT

Title Page                                                                                                                         i

Certification                                                                                                                 ii

Dedication                                                                                                                       iii

Acknowledgement                                                                                                     iv

Abstract                                                                                                                           v

List of Tables                                                                                                                 vi

Table of Content                                                                                                         vii

 

CHAPTER ONE                  INTRODUCTION

1.1       General Introduction                                                                                                     1      

1.2       Background of the Study                                                                                              4

1.2.1    Socio-Economic and development challenges in Nigeria’s agriculture                         4

1.3       Statement of the Problem                                                                                             8

1.4       Objectives of the Study                                                                                                 8

1.5       Scope and Limitation of the Study                                                                               8      

1.6       Significance of the Study                                                                                              9      

1.7       Formulation of Hypothesis                                                                                            9      

1.8      Methodology                                                                                                                  9

1.9       Organization of the Study                                                                                            10                                                                 

 

 

vii

CHAPTER TWO                 LITERATURE REVIEW  

                                               

2.1       Role of Agriculture in an economy                                                                             12

2.2       Importance of Agriculture                                                                                          19

2.3       Analysis of Selected Indicators of Agricultural Growth                                            20

2.3.1    Trends in input utilization                                                                                           20

2.3.2    Trends in Agricultural Financing                                                                                21

2.4       Agricultural Output                                                                                                    21

2.4.1    Crop Output gap                                                                                                         22

2.4.2    Livestock Output gap                                                                                                 22

2.4.3    Fisheries Output gap                                                                                                   23

2.5       Agricultural Constraints                                                                                              24

2.5.1    Financial Contraints                                                                                                    24

2.5.2    Infrastructure Constraints                                                                                           53

2.5.3    Environmental Constraints                                                                                         27         2.5.4            Management Constraints                                                                                            27

  1. Land Use Constraints                                                                                                 28
  2. Institutional  Reforms                                                                                                 28
  3.     Policy Instruments                                                                                                      30

2.8       Macro-Economic variables affecting Economic Growth                                            32

2.8.1    Government Expenditure                                                                                           32

2.8.2    Investment                                                                                                                  36

2.8.3    Foreign Investment                                                                                                     39

2.9       The new Nigeria Agricultural policy                                                                           41

CHAPTER THREE             RESEARCH METHODOLOGY                          

3.1       Theoretical Framework                                                                                               45      

3.2       Model Specification                                                                                                    50      

3.3       Estimation of the Model(s)                                                                                         53      

3.4       Diagnostic Analysis                                                                                                    53      

3.5       Sources of Data                                                                                                          55                                                                  

CHAPTER FOUR                MODEL ESTIMATION & DISCUSSION

4.1       Introduction                                                                                                                56

4.2       Model Estimation                                                                                                      56      

4.3       Model Evaluation                                                                                                       57

4.4       Cochrane Orcutt Analysis                                                                                           58

                                                           

CHAPTER FIVE                 SUMMARY, RECOMMENDATION & CONCLUSION     

5.1       Summary                                                                                                                     59

5.2       Recommendations                                                                                                      59

5.3       Conclusion                                                                                                                  65                              

Appendix A: Table of data                                                                                                       66     

Appendix B: Regression Results                                                                                             67                             

Bibliography                                                                                                                             69

 

 

CHAPTER ONE

1.1     General introduction

One of the important objectives of macroeconomic policy in has been the rapid economic growth of an economy. Economic growth is defined as “the process whereby the real per capita income of a country over a long period of time.” Economic growth is measured by the increase in the amount of goods and services produced in a country. A growing economy produces more goods and services in each successive time period. Thus growth occurs when an economy’s productive capacity increases which in turn is used to produce more goods and services. In its wider aspect, economic growth implies raising the standard of living of the people and reducing Inequalities of income distribution. Economic growth is a desirable goal for a country. But there is no agreement over the annual growth rate which an economy should attain. (Jhingan, 2000).

 

Generally, economists believe in the possibility of continual growth .This belief is based on the presumption that innovations tend to increase productive technologies of both capital and labour over time. But there is every possibility that an economy may not grow despite technological innovations. Production might not increase further due to lack of demand which may retard the growth of the productive capacity of the economy. The economy may not grow further if there is no improvement in the quality of labour in keeping with the new technologies.

Economic growth is usually measured in terms of an increase in real gross national product (GNP) or gross domestic product (GDP) over time or by an increase in income per head over time. GDP measures increase in total output to a change in population. Thus, if total output rises higher as compared to population, then theirs an improvement in the average living standards. Growth is desirable because it enables the community to consume more private goods and services and the provision of a greater quantity of social goods and services such as health, education, etc. in this manner improving living standards. Government can also stimulate economic growth by increasing its current spending in the economy and through tax cuts (fiscal policy), and by increasing money supply and reducing interest rates (monetary policy).

            Principally, there are three main determinants of economic growth, which are; the growth of its labour force, the growth of capital stock, and te