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Does Commercial Banking Activities Exerts on Agricultural Growth in Nigeria? Evidence from ARDL Framework

Author

Listed:
  • Adedoyin Isola Lawal
  • Abiola John Asaleye
  • Henry Inegbedion
  • John Dean Ojeka
  • Stephen Kayode Adekunle
  • Enoch Olaniyan
  • T. David Eyiolorunshe
  • Olayinka Abosede Olabode

Abstract

The current study examined the Impact of commercial bank loan activities on Nigeria's agricultural productivity with a focus on the impact of the agricultural sector credit guarantee scheme fund, commercial Bank credits to agricultural output, interest rate and the government recurrent expenditure on the agriculture sector. We employed the newly developed augmented regressive distributed lag to examine whether or not commercial lending activities enhances productivity. Our results shows that though a positive relationship exist between agricultural output and each of agricultural sector credit guarantee scheme fund and the government recurrent expenditure on the agriculture sector, the relationship is not significant. The result also shows that a positive but not significant relationship exists between commercial Bank credits to agricultural output, and that a negative but significant relationship exists between interest rate and agriculture output. The implication is that increase in commercial bank lending has not been able to induce positive growth in the agricultural output in Nigeria. Our results provoke insights thinking on the role of commercial banking activities in advancing agriculture in Nigeria.

Suggested Citation

  • Adedoyin Isola Lawal & Abiola John Asaleye & Henry Inegbedion & John Dean Ojeka & Stephen Kayode Adekunle & Enoch Olaniyan & T. David Eyiolorunshe & Olayinka Abosede Olabode, 2019. "Does Commercial Banking Activities Exerts on Agricultural Growth in Nigeria? Evidence from ARDL Framework," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 8, December.
    • Handle: RePEc:bjz:ajisjr:1846
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    References listed on IDEAS

    as
    1. Adedoyin Isola Lawal & Tony I. Nwanji & Abiola Asaleye & Victor Ahmed, 2016. "Economic growth, financial development and trade openness in Nigeria: An application of the ARDL bound testing approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1258810-125, December.
    2. Lawal Adedoyin Isola & Awonusi Frank & Babalola Kehinde Leke, 2015. "Can Nigeria Achieve Millennium Development Goals?," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 1(6), pages 72-78, 10-2015.
    3. Gautam, Madhur & Ahmed, Mansur, 2019. "Too small to be beautiful? The farm size and productivity relationship in Bangladesh," Food Policy, Elsevier, vol. 84(C), pages 165-175.
    4. Adedoyin LAWAL & Abiola ASALEYE & Joseph ISEOLORUNKANMI & Olabisis POPOOLA, 2018. "Economic Growth Agricultural Output and Tourism Development in Nigeria An Application of the ARDL Bound Testing Approach," Journal of Advanced Research in Management, ASERS Publishing, vol. 9(4), pages 786-794.
    5. Adedoyin Isola Lawal & Abiola A. Babajide & Tony Ikechukwu Nwanji & Damilola Eluyela, 2018. "Are Oil Prices Mean Reverting? Evidence from Unit Root Tests with Sharp and Smooth Breaks," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 292-298.
    6. Adedoyin Isola Lawal & Russel O Somoye & Abiola Ayopo Babajide, 2017. "Are African stock markets efficient? Evidence from wavelet unit root test for random walk," Economics Bulletin, AccessEcon, vol. 37(4), pages 2665-2679.
    7. Babajide Abiola Ayopo & Lawal Adedoyin Isola & Somoye Russel Olukayode, 2016. "Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 354-360.
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