Bank Credit and Agricultural Output in Nigeria (1970 – 2013): An Error Correction Model (ECM) Approach

Nnamocha, P N; Eke, Charles N.

doi:10.9734/bjemt/2015/19884

Cited by 22 publications

(21 citation statements)

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“…While TERIN et al (2014), found that there was a one-way causality between agricultural credits and the agricultural production with the direction of being from the agricultural production to agricultural credit based on Granger causality analysis results, NNAMOCHA & EKE (2015) found no causality relationship between the variables. In this study, there was no causality relationship between agricultural credits and agricultural GDP.…”

Section: Vec Model For Short and Long Run Resultsmentioning

confidence: 98%

“…Accordingly, 17% of the difference between long-term, equilibrium, or the desired amount of agricultural GDP and the current or observed agricultural GDP is reduced each year. Findings in the literature show that agricultural credits positively affect agricultural productivity (SHAH et al, 2008;AYAZ & HUSSAIN, 2011;SALEEM & JAN, 2011;AGUNUWA et al 2015;AWOTIDE et al 2015;CHISASA & MAKINA, 2015;NNAMOCHA & EKE, 2015;UDOKA et al 2016;OGBUABOR & NWOSU, 2017;DURAMAZ & TAS, 2018;ADEMOLA, 2019;TAMBI & BIME, 2019). IQBAL et al (2003), SIAL et al (2011, REHMAN et al (2017), KOC et al (2019); REHMAN et al (2019), found that agricultural credits have a positive and statistically significant effect on agricultural GDP.…”

Section: Ols Regression For Parameter Relationsmentioning

confidence: 99%

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Determining of agricultural credit impact on agricultural production value in Turkey

Bahşi

Çetin

2020

Cienc. Rural

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Agriculture is an indispensable activity for all countries. Depending on the increasing population, food needs can be met by increasing agricultural production. In this respect, it is of great importance to investigate the value of agricultural production and the factors affecting agricultural production. This study aimed to examine the impact on the agricultural production value of agricultural bank credit in Turkey. In the study, with the aim of examining the relationship between agricultural credit and agricultural production value in Turkey, 1998-2016 real agricultural loans and agricultural real gross domestic product annual data covering the period given above were used. The statistical analysis tool is ordinary least squares (OLS) techniques. According to OLS regression, the purposed model explains 83.94% of total variance. Regression coefficients show that effect of term is higher than effect of agricultural credits. The reason for this difference may be explained as dependency of credits on macroeconomic indicators and political structure of the country. This study proposes that agricultural credit mechanism in the country needs to be developed to increase the financing opportunities for the realization of technology and modernization investments by farmers.

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Section: Vec Model For Short and Long Run Resultsmentioning

confidence: 98%

Section: Ols Regression For Parameter Relationsmentioning

confidence: 99%

Determining of agricultural credit impact on agricultural production value in Turkey

Bahşi

Çetin

2020

Cienc. Rural

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“…A key finding by Eddine Chebbi is that constraints on bank credit hamper growth in agricultural output. In a regression-based study, Nnamocha and Eke (2015) confirm that bank credit and industrial output influence agricultural output in the long run. In addition, industrial output has short-run linkages with agricultural output.…”

Section: Literature Reviewmentioning

confidence: 80%

Revisiting the Causal link Between Agriculture, Industrial output and Financial Sector Development in South Africa

Sibanda¹,

Gumede²,

Nomlala³

et al. 2019

J. Rev. Global Econ.

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This study seeks to establish the relationship between agriculture, industrial output and financial sector development in South Africa. It uses the Autoregressive Distributed Lag, Error Correction models and Granger causality techniques to test for long-and short-run relationships. The evidence from the models indicates the presence of a longrun relationship between industrial output and agriculture, which suggests that these sectors depend on each other for raw materials and inputs. In addition, stock market development represented by market capitalization has a long-run relationship with agriculture. However, no long-run relationship is established between credit extension and agriculture; and between gross fixed capital formation and agriculture, suggesting that an increase in agricultural output does not impact investment in long-term fixed assets. The evidence also shows a long-run relationship between exports and agricultural output, which is consistent with the export-led growth hypothesis. These findings have implications for policy formulation and allocation of resources.

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“…How growth has been seen in case export sector created by money bank credit within a timeframe of 1986 to 2016 by Okosodo and Imoughele (2019). The impact of bank credit on Nigerian agricultural output had been reviewed by Nnamocha and Eke (2015). The effect of deposit money banks financing on real sector output had been studied by Arikpo and Adebisi (2017).…”

Section: Empirical Reviewmentioning

confidence: 99%

Credit Financing and Agricultural Growth in Nigeria

Ajao¹,

Cole²,

Keng³

2020

theijbm

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Agriculture is key to the industrial development of any nation this is because in addition to providing food security for the population, it also provides raw materials which industries depends upon for the production of goods and services. As indicated by Ijaiya (2005) regardless of the power of the oil and gas area in Nigeria, agricultural sector despite everything stays as one of the significant bases of financial strength in the economy. From late 1950s to mid-1960s, Nigerian economy was mainly dependent on agriculture. It contributed more than 65% of the nation's Gross Domestic Product (GDP) and a significant portion of the foreign exchange earnings. This sector has most significant parts of Nigeria's economy as it holds a ton of possibilities for future monetary improvement of the country having assumed driving job in the far-off past. With the coming of oil as a significant source of government revenue and foreign exchange earner, agriculture has been overlooked which prompted the drop of the sector's commitment to the economy. Development in the agricultural sector is two to four times more effective in raising incomes among the poorest compared to other sectors and also crucial to economic growth (Okoh, Amadi, Ojiya and Ani, 2019) Albeit Nigerian relies vigorously upon the oil business for its budgetary incomes, the nation is transcendently still an agrarian culture with around 70% of the populace taking part in agricultural creation at a subsistence level. In light of the fluctuating climatic states of places and the tremendous and rich soil, the nation produces mixtures of crops while a significant portion of the agricultural sector in Nigeria involves livestock productions, fishing, poultry and lumbering, hence agricultural products were major export product in the 1960s and mid-1970s (CBN, 2013). The agricultural dedication to the GDP in spite of proper fund provides a scope for farm capital investment (Ali, Jatau and Ekpe, 2016). This study has an objective to check the effect of credit financing and agricultural growth in the form of deposit money banks' credit in Nigeria.

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Bank Credit and Agricultural Output in Nigeria (1970 – 2013): An Error Correction Model (ECM) Approach

Cited by 22 publications

References 0 publications

Determining of agricultural credit impact on agricultural production value in Turkey

Determining of agricultural credit impact on agricultural production value in Turkey

Revisiting the Causal link Between Agriculture, Industrial output and Financial Sector Development in South Africa

Credit Financing and Agricultural Growth in Nigeria

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