IDEAS home Printed from https://ideas.repec.org/a/vrs/auseab/v8y2020i1p53-67n1.html
   My bibliography  Save this article

Agricultural Financing and Unemployment Rate in Nigeria: A Cointegration Approach

Author

Listed:
  • Adegboyega Raymond Rahaj

    (Faculty of Social and Management Sciences, Olabisi Onabanjo University, Ago-Iwoye, PMB 2002, Ogun State, Nigeria)

Abstract

In Nigeria, the level of agricultural productivity and farmers’ income have been affected by inadequate financing, which invariably discourages job creation and increases unemployment rate. Therefore, the study examines the impact of agricultural financing on unemployment rate in Nigeria, using time series data collected from the Central Bank of Nigeria (CBN) and the World Bank database from 1981 to 2018. Using Johansen’s cointegration, Error Correction Method (ECM), and Granger causality analytical techniques, our findings show that AGRIC_GDP, AGRICL_TL, GR, LR, and RUTP have a long-run relationship with UNEMPR and are statistically significant. Also, the ECM of about 57%, which is statistically significant, provides an indication of a satisfactory speed of adjustment and translates that about 57 percent of the errors are corrected in each period. The study recommends among others that government policy on agricultural credit should place more emphasis on strengthening banks’ commitment.

Suggested Citation

  • Adegboyega Raymond Rahaj, 2020. "Agricultural Financing and Unemployment Rate in Nigeria: A Cointegration Approach," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 8(1), pages 53-67, October.
    • Handle: RePEc:vrs:auseab:v:8:y:2020:i:1:p:53-67:n:1
    DOI: 10.2478/auseb-2020-0004
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/auseb-2020-0004
    Download Restriction: no
    File URL: https://libkey.io/10.2478/auseb-2020-0004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    agricultural financing; agricultural production; financial markets; growth rate; unemployment rate;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G00 - Financial Economics - - General - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:auseab:v:8:y:2020:i:1:p:53-67:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.