Capital investment : lubricant of the engine of production process in agricultural sector – evidence from Nigeria
Journal Title: Agricultural and Resource Economics: International Scientific E-Journal - Year 2017, Vol 3, Issue 4
Abstract
This study examined the effect of capital investment on the productivity of agricultural sphere of Nigeria. The productivity of the sector was proxy as the agriculture’s contribution to the GDP while commercial bank loan to agriculture, annual budgetary allocation to agricultural sector and various categories of ACGS loan scheme were proxy as investment frameworks. The data used for thus study were extracted from various bulletin of Central Bank of Nigeria and National Bureau of Statistics from 1978–2014. The long and short run relationship of these variables were estimated using the Johansen approach to cointegration and the Vector Autoregressive Error Correction Model respectively. The test of cointegration revealed presence of long run relationship among the various investment sources and categories and agricultural productivity in Nigeria. This confirmed capital as the lubricant of the production process without which other factors of production may become difficult to acquire. The short run estimates revealed total volume of loan, volume of loan to individual and volume of loan above N100,000 as variables that influence agricultural productivity in the short run, further confirming the important place of capital investment in creating jobs in agricultural sector.
Authors and Affiliations
Akinbode Michael Okunola
Keywords
Related Articles
- EP ID EP259104
- DOI -
- Views 143
- Downloads 0
Methodical approaches to determination of essence and classification of insurance
The article defines different methodological approaches to the essence of insurance. Insurance is a special type of economic activity in the process of which an insurance fund is created, from which, in the event of an i...
Institutional support for sustainable development financing in the light of the multistakeholder approach
Purpose. The purpose of the article is to classify institutions funding sustainable development initiatives and to study their experience at the European and national levels. Methodology / approach. As a meaningful metho...
Curse or blessing: economic growth and natural resources (Comparison of the Development of Botswana, Canada, Nigeria and Norway in the Early 21st Century)
This paper aims to review the concept of resource curse, to summarize key points from existing literature and apply them on four selected countries at the beginning of the new millennium. The practical part investigates...
Forming conjuncture in the world honey market: current state and prospects for Ukrainian exporters
Purpose. The purpose of the article is to study the specifics of export and import of honey in conditions of liberalization of world trade. Methodology / approach. The theoretical and methodological basis of the research...
Formation of communities ancestral estate as foundation of rural development in the context of authority decentralization
This paper describes alternative settlement as a system of socio-economic and environmental development of rural areas. It also describes the Ancestral Estate as a phenomenon of balanced self-development of territorial c...