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Federal Government Agricultural Financing And Economic Growth In Nigeria

Author

Listed:
  • Rasaki Olufemi Kareem

    (Department of Economics and Actuarial Sciences, College of Arts, Social and Management Sciences, Crescent University, Abeokuta, Ogun State, Nigeria)

  • Rukayat Adebunmi Arije

    (Department of Economics and Actuarial Sciences, College of Arts, Social and Management Sciences, Crescent University, Abeokuta, Ogun State, Nigeria)

  • Zakariah Olayiwola Amoo

    (Department of Agriculture, School of Agriculture, Lagos State University, Epe Campus, Lagos State, Nigeria)

  • Hassan Yusuf Avovome

    (Department of Economics, Federal College of Education, Osiele, Abeokuta, Ogun State, Nigeria)

Abstract

This paper analyzed the impact of federal government agricultural financing on economic growth in Nigeria. The study utilized the time series data which was extracted from the Central Bank of Nigeria statistical bulletin. The properties of the variables were tested using the Augmented Dickey-Fuller unit root test. A Single equation cointegration test confirmed no cointegration and a short-run vector autoregressive model was used to analyze the data, after which the diagnostic test was carried out to confirm the normality of the series. The study revealed that federal government agricultural financing has a negative contribution to economic growth in Nigeria and was statistically insignificant. Agricultural Credit Guarantee Scheme Funds had a positive but not statistically significant contribution to economic growth and there was no causal relationship among the variables. The study concluded that federal government agricultural financing has no significant impact on economic growth in Nigeria. Therefore, the study recommended that federal government should increase funding to the agricultural sector to be able to impact positively on the economic growth of Nigeria.

Suggested Citation

  • Rasaki Olufemi Kareem & Rukayat Adebunmi Arije & Zakariah Olayiwola Amoo & Hassan Yusuf Avovome, 2022. "Federal Government Agricultural Financing And Economic Growth In Nigeria," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 20(1), pages 31-40, May.
    • Handle: RePEc:tuz:journl:v:20:y:2022:i:1:p:31-40
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    References listed on IDEAS

    as
    1. Folster, Stefan & Henrekson, Magnus, 2001. "Growth effects of government expenditure and taxation in rich countries," European Economic Review, Elsevier, vol. 45(8), pages 1501-1520, August.
    2. Tajudeen Egbetunde Ismail O. Fasanya, 2013. "Public Expenditure and Economic Growth in Nigeria: Evidence from Auto-Regressive Distributed Lag Specification," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 16(1), pages 79-92, May.
    3. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
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    More about this item

    Keywords

    agricultural sector; agricultural finance; unit root test; economic growth;
    All these keywords.

    JEL classification:

    • N2 - Economic History - - Financial Markets and Institutions
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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