IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/87755.html

The Impact of Exchange Rate Dynamics on Agricultural Output Performance in Nigeria

Author

Listed:
  • Adekunle, Wasiu
  • Ndukwe, Innocent

Abstract

The study investigated the possible asymmetric effect of real exchange rate dynamics on agricultural output performance in Nigeria over the period of 1981 to 2016 by collecting data from secondary sources. The study employed a combination of stationary and nonstationary variables as was found out through the ADF unit root test. Based on the Bounds test for cointegration, a long-run relationship was absent between real exchange rate and agricultural output, irrespective of specifications. Generally, the result of model estimation showed that the significant drivers of agricultural output are real exchange rate (log-levels), real appreciation and depreciation (after some lags), industrial capacity utilization rate, and government expenditure on agriculture (after some lags). ACGSF loan exerted positive and insignificant influence on agricultural output. In addition, though the effect of real appreciation was larger than that of real depreciation, the present study could not find any evidence in support of the asymmetric effect of real exchange rate dynamics on agricultural output performance in the Nigerian economy. It is therefore suggested that fiscal and monetary authorities in Nigeria should work in unison at ensuring that the full potentials of the agricultural sector are harnessed for the growth and development of the country.

Suggested Citation

  • Adekunle, Wasiu & Ndukwe, Innocent, 2018. "The Impact of Exchange Rate Dynamics on Agricultural Output Performance in Nigeria," MPRA Paper 87755, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:87755
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/87755/1/MPRA_paper_87755.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:aer:wpaper:57 is not listed on IDEAS
    2. Kwanashie, M & Garba, A-G & Ajilima, I, 1997. "Policy Modelling in Agriculture : Testing the Response of Agriculture to Adjustment Policies in Nigeria," Papers 57, African Economic Research Consortium.
    3. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
    4. repec:hur:ijaraf:v:5:y:2015:i:1:p:190-198 is not listed on IDEAS
    5. Oyinbo, O. & Rekwot, G. Z., 2014. "Econometric Analysis of the Nexus of Exchange Rate Deregulation and Agricultural Share of Gross Domestic Product in Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(01), pages 1-7.
    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. Alexander Olawumi Dabor (PhD) & UMORU David & eauty Ekiomado Eguasa (PhD) & LOVY Omote-Ivie Atarere (PhD) & Victor Chukwudeme Odu (PhD, FCA) & Abusomwa Racheal Eloho (PhD), 2023. "Cash Crop Output and Foreign Currency Exchange Rate in Nigeria: A Vector Error Correction Model Analysis," Journal of Agriculture and Crops, Academic Research Publishing Group, vol. 9(2), pages 187-198, 04-2023.
    2. Nith, Kosal & Ly, Singhong, 2018. "Reinvigorating Cambodian agriculture: Transforming from extensive to intensive agriculture," MPRA Paper 93091, University Library of Munich, Germany, revised 23 Dec 2018.
    3. Abiola John Asaleye & Rotdelmwa Filibus Maimako & Adedoyin Isola Lawal & Henry Inegbedion & Olabisi Popoola, 2021. "Monetary Policy Channels and Agricultural Performance: Evidence from Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(3), pages 205-218, March.
    4. Nabasirye, Racheal, "undated". "Impact of Total Government Expenditure and Its Break down on Growth in Agricultural Value Added," Theses and Dissertations 319992, Makerere University.
    5. Okidim, Iboh Andrew & Obe-Nwaka, Mba Oloi & Okuduwor, Adibie & Tuaneh, Godwin Lebari, . "Dynamics of Stabilization Policies and Investment Effects on Agricultural Output in Nigeria (1981-2019)," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 11(2).
    6. Nith, Kosal & Ly, Singhong, 2018. "Reinvigorating Cambodian agriculture: Transforming from extensive to intensive agriculture," MPRA Paper 93086, University Library of Munich, Germany, revised 23 Dec 2018.
    7. Ogunjinmi, Olusola O. & Adekunle, Emmanuel A., 2025. "Asymmetric Effects of Monetary Policy on Agricultural Performance in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 13(1).
    8. Paitoon Chetthamrongchai & Sudawan Somjai & Thitinan Chankoson, 2020. "The contribution of macroeconomic factors in determining the economic growth, export and the agricultural output in agri-based ASEAN economies," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2043-2059, March.
    9. Lionel Effiom & Emmanuel Uche & Otei Asuquo Otei, 2021. "Asymmetric effects of capital flight on domestic investment in Nigeria: evidence from non-linear autoregressive distributed lag model," SN Business & Economics, Springer, vol. 1(10), pages 1-23, 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. Edouard Mien & Michaël Goujon, 2022. "40 Years of Dutch Disease Literature: Lessons for Developing Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(3), pages 351-383, September.
    2. Peretto, Pietro F. & Valente, Simone, 2011. "Resources, innovation and growth in the global economy," Journal of Monetary Economics, Elsevier, vol. 58(4), pages 387-399.
    3. Blanco, Luisa & Grier, Robin, 2012. "Natural resource dependence and the accumulation of physical and human capital in Latin America," Resources Policy, Elsevier, vol. 37(3), pages 281-295.
    4. Mehlum, Halvor & Moene, Karl Ove & Østenstad, Gry, 2025. "Add and rule," Journal of Economic Behavior & Organization, Elsevier, vol. 229(C).
    5. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
    6. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
    7. T.K. Jayaraman & Chee-Keong Choong & Pravinesh Chand, 2016. "Do Foreign Aid And Remittance Inflows Hurt Competitiveness Of Exports Of Pacific Island Countries? An Empirical Study Of Fiji," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 41(2), pages 111-125, June.
    8. Alex Robson, 2015. "The Australian Economy and Economic Policy During and After the Mining Boom," Economic Affairs, Wiley Blackwell, vol. 35(2), pages 307-316, June.
    9. Peter Tulip, 2014. "The Effect of the Mining Boom on the Australian Economy," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 17-22, December.
    10. Muntasir Murshed & Seemran Rashid, 2020. "An Empirical Investigation of Real Exchange Rate Responses to Foreign Currency Inflows: Revisiting the Dutch Disease Phenomenon in South Asia," The Economics and Finance Letters, Conscientia Beam, vol. 7(1), pages 23-46.
    11. Clements, Kenneth W. & Fry, Renée, 2008. "Commodity currencies and currency commodities," Resources Policy, Elsevier, vol. 33(2), pages 55-73, June.
    12. Carlos Morales, 2011. "Variedades de recursos naturales y crecimiento económico," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE.
    13. Muhammad Shahbaz & Cem Işık & Serdar Ongan & Bekhzod Kuziboev, 2025. "Investigating resource curse/Blessing hypothesis in Central Asia: Do mineral resources matter for economic growth?," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 38(3), pages 625-638, September.
    14. Paul Collier & Anke Hoeffler, 2002. "AID, Policy and Peace: Reducing the risks of civil conflict," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(6), pages 435-450.
    15. George N. Ike & Ojonugwa Usman & Cihat Köksal, 2025. "Oil price movements and agricultural production from heterogeneous sub‐sectors: Analysing the Dutch disease in an African resource‐rich economy," Natural Resources Forum, Blackwell Publishing, vol. 49(1), pages 6-28, February.
    16. Behzadan, Nazanin & Chisik, Richard & Onder, Harun & Battaile, Bill, 2017. "Does inequality drive the Dutch disease? Theory and evidence," Journal of International Economics, Elsevier, vol. 106(C), pages 104-118.
    17. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May.
    18. Ben-Salha, Ousama & Dachraoui, Hajer & Sebri, Maamar, 2021. "Natural resource rents and economic growth in the top resource-abundant countries: A PMG estimation," Resources Policy, Elsevier, vol. 74(C).
    19. Pietro F. Peretto & Simone Valente, 2010. "Resource Wealth, Innovation and Growth in the Global Economy," CER-ETH Economics working paper series 10/124, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    20. Andrea Ferrero & Martin Seneca, 2019. "Notes on the Underground: Monetary Policy in Resource‐Rich Economies," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 51(4), pages 953-976, June.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q19 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:87755. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.