IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2018-05-11.html

Credit Supply and Rice Output in Nigeria: Empirical Insight from Vector Error Correction Model Approach

Author

Listed:
  • Osaretin Kayode Omoregie

    (Lagos Business School, Pan-Atlantic University, Nigeria)

  • Fredrick Ikpesu

    (School of Management and Social Science, Pan-Atlantic University, Nigeria,)

  • Abraham Emmanuel Okpe

    (Federal University of Agriculture, Makurdi, Benue State, Nigeria.)

Abstract

This study investigated the effect of credit supply on rice output in Nigeria within the periods 1981 to 2016 by employing the VECM approach. Findings from the research revealed that a rise in credit supply would lead to increase in rice output. In addition, the study indicated that a shock in investment, and labour would cause decline in rice output while a shock in money supply and inflation rate would cause rice output to rise in the country. Based on the result of the study, it is recommended that government in partnership with deposit money banks should create a scheme that will provide an interest free loan to farmers that are involved in rice production. Also, government should encourage rice farmers by supplying them farm inputs (which includes the provision of high yielding varieties, fertilizers, land, irrigation) at a subsidizes rate.

Suggested Citation

  • Osaretin Kayode Omoregie & Fredrick Ikpesu & Abraham Emmanuel Okpe, 2018. "Credit Supply and Rice Output in Nigeria: Empirical Insight from Vector Error Correction Model Approach," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 8(5), pages 68-74.
    • Handle: RePEc:eco:journ1:2018-05-11
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/6803/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/6803/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mr. Paul Cashin & Ms. Catherine A Pattillo & Ms. Ratna Sahay & Mr. Paolo Mauro, 2001. "Macroeconomic Policies and Poverty Reduction: Stylized Facts and an Overview of Research," IMF Working Papers 2001/135, International Monetary Fund.
    2. Boansi, David, 2013. "Output supply and yield response of rice in Nigeria: implications for future rice policy," MPRA Paper 48080, University Library of Munich, Germany.
    3. Ogechi Adeola & Fredrick Ikpesu, 2016. "An empirical investigation of the impact of bank lending on agricultural output in Nigeria: A vector autoregressive (VAR) approach," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(6), pages 89-103, Special I.
    4. Diagne, Aliou & Zeller, Manfred, 2001. "Access to credit and its impact on welfare in Malawi," Research reports 116, International Food Policy Research Institute (IFPRI).
    5. Mahoukede, Kinkingninhoun-Medagbe & Aliou, Diagne & Gauthier, Biaou, 2015. "Impact of Use of Credit in rice farming on rice Productivity and Income in Benin," 2015 Conference, August 9-14, 2015, Milan, Italy 211635, International Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chandio, Abbas Ali & Jiang, Yuansheng & Ahmad, Fayyaz & Adhikari, Salina & Ain, Qurat Ul, 2021. "Assessing the impacts of climatic and technological factors on rice production: Empirical evidence from Nepal," Technology in Society, Elsevier, vol. 66(C).
    2. Zakia Batool & Qurat ul Ain & Abdul Rehman, 2024. "Exploring the effects of farm mechanization, financial development, and renewable energy on China’s food production," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 18883-18902, July.
    3. Abbas Ali Chandio & Yuansheng Jiang & Waqar Akram & Ilhan Ozturk & Abdul Rauf & Aamir Ali Mirani & Huaquan Zhang, 2023. "The impact of R&D investment on grain crops production in China: Analysing the role of agricultural credit and CO2 emissions," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4120-4138, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abbas Ali Chandio & Yuansheng Jiang & Waqar Akram & Ilhan Ozturk & Abdul Rauf & Aamir Ali Mirani & Huaquan Zhang, 2023. "The impact of R&D investment on grain crops production in China: Analysing the role of agricultural credit and CO2 emissions," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4120-4138, October.
    2. Tchale, H. & Sauer, J., . "Soil Fertility Management and Agricultural Productvity in Malawi," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 42.
    3. Renata Baborska & Emilio Hernandez & Emiliano Magrini & Cristian Morales-Opazo, 2020. "The impact of financial inclusion on rural food security experience: A perspective from low-and middle-income countries," Review of Development Finance Journal, Chartered Institute of Development Finance, vol. 10(2), pages 1-18.
    4. Hermann Sautter, 2002. "Equity and growth – an uneasy relationship," Ibero America Institute for Econ. Research (IAI) Discussion Papers 089, Ibero-America Institute for Economic Research.
    5. repec:ebl:ecbull:v:8:y:2007:i:4:p:1-7 is not listed on IDEAS
    6. James Nyarkoh, Bright, 2017. "Modelling Trade Liberalisation-Poverty Nexus for Ghana," MPRA Paper 76209, University Library of Munich, Germany.
    7. Smale, Melinda & Jayne, Thomas S., 2003. "Maize in Eastern and Southern Africa: 'seeds' of success in retrospect," EPTD discussion papers 97, International Food Policy Research Institute (IFPRI).
    8. Paramasivam Ramasamy & Umanath Malaiarasan, 2023. "Agricultural credit in India: determinants and effects," Indian Economic Review, Springer, vol. 58(1), pages 169-195, June.
    9. Mahoukede, Kinkingninhoun-Medagbe & Aliou, Diagne & Gauthier, Biaou, 2015. "Impact of Use of Credit in rice farming on rice Productivity and Income in Benin," 2015 Conference, August 9-14, 2015, Milan, Italy 211635, International Association of Agricultural Economists.
    10. Paswel P. Marenya & Christopher B. Barrett, 2009. "Soil quality and fertilizer use rates among smallholder farmers in western Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 561-572, September.
    11. Kshitij Chaudhary, 2015. "The effect of political decentralisation and affirmative action on Multidimensional Poverty Index: evidence from Indian States," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 17(1), pages 27-49, April.
    12. Simtowe, Franklin, 2009. "Is relaxing equity constraints panacea for Malawi’s green gold expansion? A fuzzy regression discontinuity design approach," MPRA Paper 17065, University Library of Munich, Germany.
    13. Ms. Caroline M Kende-Robb, 2003. "Poverty and Social Impact Analysis: Linking Macroeconomic Policies to Poverty Outcomes: Summary of Early Experiences," IMF Working Papers 2003/043, International Monetary Fund.
    14. Conning, Jonathan & Udry, Christopher, 2007. "Rural Financial Markets in Developing Countries," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 56, pages 2857-2908, Elsevier.
    15. Makuluni Fatso E. & Dunga Hannah Mayamiko, 2022. "The Impact of Access to Credit on Welfare Inequality in Malawi," Studia Universitatis Babeș-Bolyai Oeconomica, Paradigm, vol. 67(2), pages 50-66, August.
    16. Ralitza Dimova & Ira N. Gang, 2015. "Female Engagement in Commercial Agriculture, Interventions and Welfare in Malawi: What Works for the Poorest?," Departmental Working Papers 201522, Rutgers University, Department of Economics.
    17. Rochelle Holm & Wales Singini & Simeon Gwayi, 2016. "Comparative evaluation of the cost of water in northern Malawi: from rural water wells to science education," Applied Economics, Taylor & Francis Journals, vol. 48(47), pages 4573-4583, October.
    18. Hacievliyagil Nuri & Eksi Ibrahim Halil, 2019. "A Micro Based Study on Bank Credit and Economic Growth: Manufacturing Sub-Sectors Analysis," South East European Journal of Economics and Business, Paradigm, vol. 14(1), pages 72-91, June.
    19. Nina Ashley O. Dela Cruz & Alyssa Cyrielle B. Villanueva & Lovely Tolin & Sabrina Disse & Robert Lensink & Howard White, 2025. "Effects of Interventions to Improve Access to Financial Services for Micro, Small, and Medium‐Sized Enterprises in Low‐ and Middle‐Income Countries: An Evidence and Gap Map," Campbell Systematic Reviews, John Wiley & Sons, vol. 21(3), September.
    20. Joseph I. Uduji & Elda N. Okolo-Obasi, 2023. "Analysis of Rural Women’s Access to Financial Services and Corporate Social Responsibility in Nigeria’s Niger Delta Region," Working Papers of the African Governance and Development Institute. 23/080, African Governance and Development Institute..
    21. Jean Adanguidi & Cocou Jaures Amegnaglo, 2024. "Technical Efficiency of Yam Producers: The Case of the Municipality of Glazoue in Benin," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 13(3), pages 1-24, July.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • 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:eco:journ1:2018-05-11. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Monica Sinhat (email available below). General contact details of provider: https://econjournals.com/index.php/ijefi .

    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.