Impact Of Bank Credit Financing On Agricultural Output In Nigeria

  • Bassey Nsikan Edet Department of Agricultural Economics and Resources Management Akwa Ibom State University, Ikot Akpaden, Mkpat Enin, P.M.B. 1167, Uyo, Akwa Ibom State, Nigeria
  • Akpaeti Aniekan Jim Department of Agricultural Economics and Resources Management Akwa Ibom State University, Ikot Akpaden, Mkpat Enin, P.M.B. 1167, Uyo, Akwa Ibom State, Nigeria
  • Udo Udoro Jacob Department of Agricultural Economics and Resources Management Akwa Ibom State University, Ikot Akpaden, Mkpat Enin, P.M.B. 1167, Uyo, Akwa Ibom State, Nigeria
Keywords: Bank credit, agricultural output, macro-policy variables

Abstract

In this study, time series data sourced from Central bank of Nigeria for the period 1970-2011 was employed to examine the effect of bank credit and macro-policy variables on agricultural output in Nigeria. Data were analyzed using Co-integration and error correction model. To avoid having a spurious regression, data were first examined for stationarity using the Augmented Dickey-Fuller test. Result revealed that all the variables were stationary at first difference except inflation rate that was stationary at level.

References

Adegeye AJ, Dittoh TS (1985). Essentials of Agricultural Economics. Impact Publishers Nig. Ltd, Ibadan, P.59

Akpan SB, Vincent IP, Bassey NE (2012). The Empirical link between cassava output growth rate and some macro-policy variables in Nigeria (1970-2011). Proceedings of the annual Conference of Nigerian Associationof Agricultural Economics (NAAE), held at Obafemi Awolowo University, Ile Ife, Osun State, Nigeria September 25th-27th

Aku PS (1995). Comparative Analysis of NAC and ACGPS loan disbursement to Agriculture in Nigeria. J. Soc. and Man. Stud., 2(34):99-108.

Alabi RAC, Chime C (2008). The Impact of Food Production on Food Importation in

Nigeria. Final Report Presented at the African Economic Research Consortium (AERC) Biennial Research Workshop in Entebbe, Uganda, May 31st-June 5th ,2008.

Andreou E, Pelloni A, Sensier M (2008). Is volatility good for growth? Evidence from the G7.Centre for Growth and Business Cycle Research, Discussion Paper Series No. 97, University of Manchester.

Bassey NE., Attaret AE, Nkeme KK, Udoh E (2014a). Determinants of loan Repayment: A study of rural women fish traders in Akwa Ibom State, Nigeria. B. J. Econ. Man. Trad., 4(4): 541-550.

Bassey NE, Asinya FA, Amba, EA (2014b). Bank credit finance and macro economic determinants of industrial output in Nigeria 1980-2010. I. J. of Hum. Soc. Sci.,4(6):113-119.

Central Bank of Nigeria (2007). Statistical Bulletin, Lagos, CBN.

Central Bank of Nigeria (1995). Central Bank of Nigeria. Annual Report and Statement of Account, Lagos, Nigeria.

Central Bank of Nigeria (2011). Central Bank of Nigeria. Annual Report and Statement of Account, Lagos, Nigeria.

Egbe AB (2000). Financial Institution and Agricultural Finance: The role of the Central Bank. Central Bank Economic and Financial Studies, Vol.29,pp 141.

Engle RF, Granger CWJ (1987). Co-integration and error correction: Representation, estimation and testing. Econometrica; 55(2):251-276.

Federal Ministry of Environment Nigeria (2001). National Action Programme to Combat Diserttification. Available online http//www.uncd.int/action programmes/Africa/national

Federal Office of Statistics (1989).Yearly Economic Review, December. Federal Office of Statistics (1989).Yearly Economic Review, December.

Granger CWJ (1986). Developments in the Study of Co-integrated Variables. Oxford Bulletin of Economics and Statistics, 48(9):213-228.

Hendry DF (1986). Econometric Modelling with Co-integrated Variables: An overview. Oxford Bulletin of Economics and Statistics, 48: 201-212.

Idachaba F (1991). The Nature of the Nigerian Food Problem. J. Agric. Sci. Tech. University of Agriculture, Makurdi, 1 (1): 1-77

International Fund for Africa’s Development (1991). Overview of Gender Issues in IFAD Assisted Projects, IFAD.

Johansen S (1988). Statistical Analysis of Cointegration Vector. J. of Econ dynam. Con., 12, 231-254.

Johansen S (1991). Estimation and Hypothesis of Cointegration Vectors in Gaussian Vector Autoregressive Model Models. Econometrica, 59, 1551-1580.

Linda VB (2001). Economy: African South of the Sahara, 30th Edition ( London: Europe Publications), pp 876-904.

Loto MA (2012). The determinants of output expansion in the Nigerian manufacturing industries. J. Emerg. Trend. In Econ. Man. Sci. (JETEMS) 3(6): 991-996.

MacKinnon JG (1991). Critical Values for CointegrationTests, Chapter 13. In: RF Engle, CWJ Granger

(Eds.):Long-run Economic Relationships: Readings in Cointegration, Oxford: Oxford University Press.

Mesike CS, Okoh RN, Inoni OE 2010. Supply Response of Rubber Farmers in Nigeria: An Application of Vector Error Correction Model.Agric. J., 5(3):146-150

Maddala GS (2002). Introduction to Econometrics. John Wiley and Sons, New Delhi India.

Mang HG (2009). Politics and Economics of FADAMA Irrigation and Product Sales in the Mining Areas of the Jos Plateau in Nigeria. Draft Paper for WOW Working Group on the Politics of Land, Authority and National Resources. Narayan PK, Narayan S, Smyth R (2009). Understanding the inflation-output nexus for China. Chin. Econ. Rev. Vol. 20, Pp. 82-90.

National Bureau of Statistics (2010). Labour Force Survey, 2009. NBS No.476, pp.13. Available online at http://www.Nigeria. Stat.gov.ng. last accessed 10th April,2014.

National Population Commission (2006). Census Report, Abuja, Nigeria Okorie A (1995). Role of Commercial banks in Funding Agriculture in Nigeria (1960-1986). Nig. Agric. J.,53(2): 1-10

Okuneye PA, Aromolaran AB, Adetunji MT, Arowolo TA, Adebayo K, Ayinde IA (2001).

Environmental Impact of Trade Liberization: The Case of Nigeria’s Cocoa Sub Sector. A Paper Presented at the 42nd Annual Conference of the Nigerian Economic Society at the University of Portharcourt, Nigeria, 28th -31st August.

Shekhar KC, Shekhar L (2005). Banking Theory and Practice. Vikas Publishing House PVT Ltd, New Delhi, PP.5-11, 14,124.

Udoh EJ (2005). Demand and Control of Credit from informal Sources by Rice Producing Female Farmers of Akwa Ibom State, Nigeria. J. Agric. and Soc. Sci. 1(2): 152-155.

Ugwu DS (2007). Agricultural Extention Practice in Nigeria. Readings in Agricultural Economics and Extension (ed.). in C.J.C Akuuilo, Umebali, E.E, Mgbada, J.U, Ugwu, W. E, Awoke, M.U.

Usman NE (2006). Agriculture: Vital to Nigerian Economic Development. Paper Presented at the forum of Econommic Stakeholders on “ Growing the Nigerian Economy”. Thisday Newspaper, July 25

Yusuf SA, Falusi AO (1999). Incidence of the Effect of Liberalized Trade Exchange rate policies on Cocoa in Nigeria: An ECN Approach. J. of Rur. Econ. and Dev., 13, 3-14

Zeller M, Schrieder G, VonBraun J, Heidhues F (1997). Innovative Rural Finance for the poor: A Food Security for the Poor: Implication for Research and Policy. A Publication of the International Food Policy Research Institute, Rome P. 25.
Published
2014-09-30
Section
Original Article