Macroeconomic Variables and Agricultural Output in Nigeria
Okeke Daniel C1* and Okeke Onyinye Rita2
Published: May 30, 2022
Abstract
The research work investigated the effect of macroeconomic variables on agricultural output in Nigeria. The study spanned from the period of 1995-2020, making it 26 observatory years. The agricultural output growth represented the explained variable while money supply, commercial bank loan on agriculture, exchange rate, interest rate, recurrent government expenditure on agriculture and inflation rate represented the explanatory variables which served as the selected macroeconomic variables under study. The stationary of the variables were checked using the Augmented Dickey-Fuller test. The researcher went further to test for the long run relationship using the Johansen Co-integration technique. The OLS analysis was computed which shows that the model is statistically significance, judging with the p-value of the F-statistic. The analysis also presented that money supply, exchange rate and inflation have a positive relationship with agricultural output within the given period of study while commercial bank loan on agriculture, interest rate and recurrent government expenditure on agriculture have a negative link with the explained variable. Based on the findings, the researcher made its recommendation in the work.