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

Adekunle, Wasiu; Ndukwe, CU

doi:10.2139/ssrn.3214757

Cited by 10 publications

(12 citation statements)

References 10 publications

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“…This relationship implies that an appreciation in exchange rates have a positive effect on the growth of earnings from agriculture. This finding corroborate the study conducted by (Adekunle & Ndukwe, 2018) who found an evidence of exchange rate affecting the share of agriculture in gross domestic product positively. However, the finding contradicts with the study of (Muraya, 2014;Adongo, John, Zeph & Muyima 2020) who obtained a negative influence of exchange rate on Kenya's agricultural output.…”

Section: Discussion and Analysis Of Ecm Resultssupporting

confidence: 92%

Financial Sector Liberalization and Agricultural Sector Output: Fresh Evidence From Nigeria

Ugah¹

2021

Preprint

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This study examined the relationship between financial sector liberalization and agricultural sector output in Nigeria using annual data spanning the period 1986-2020. Specifically, the objectives of the study are to examine the relationship between lending rate, exchange rate, commercial bank credit to agriculture, inflation rate and agricultural sector output in Nigeria. Ex-post facto research design was employed and the annual time series data were collated from Central Bank of Nigeria (CBN) Statistical Bulletin. The econometrics methods of unit root, co-integration and error correction mechanism were used for the analyses. The outcome of the ADF unit root test show that the variables were stationary. Also the co-integration result showed that there exist co-integration amongst the variables in the model. The results from Error Correction Model indicates that lending rate and inflation rate have a negative relationship on agricultural sector output while exchange rate and commercial bank credit to agriculture have positive relationship on agricultural sector output. Based on these results, this study recommends that government and policy makers in Nigerian should initial policies that will boost investments in the agricultural sector through direct provision of credits to agriculturist and banks should also lend at a very low and subsidized interest rate to enable farmers’ access agricultural loans that will boost agricultural productivity in the economy.

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Section: Discussion and Analysis Of Ecm Resultssupporting

confidence: 92%

Financial Sector Liberalization and Agricultural Sector Output: Fresh Evidence From Nigeria

Ugah¹

2021

Preprint

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“…Second, like the conventional ARDL, it also affords the opportunity of evaluating the existence of a long-run relationship among variables, also called the bounds test. Finally, NARDL offers a framework which permits the evaluation of dynamic effects of both negative and positive changes in the regressors on a specific dependent variable (Adekunle and Ndukwe 2018).…”

Section: Empirical Methodologymentioning

confidence: 99%

Asymmetric effects of capital flight on domestic investment in Nigeria: evidence from non-linear autoregressive distributed lag model

2021

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Economic theory prescribes that domestic investment is a decreasing function of capital flight. However, is there a possibility that reversals in capital flight might lead to a decline in investment levels in Nigeria? Put differently, is there a tendency for domestic investment to maintain a downward spiral, a ratchet effect, even in the face of lower levels of capital flight? Extant literature on capital flight in Nigeria is silent on this enquiry. This study is therefore a modest first attempt at investigating these possibilities. Employing the non-linear autoregressive distributed lag model, the study finds evidence of asymmetric impact of capital flight on investment undertaken at the national level. However, investment by subnational governments revealed the existence of symmetry, while overall, total public sector investments (by both States and Federal Governments) indicated the existence of asymmetric effects between positive and negative deviations of capital flight. The paper re-echoes the need for the strengthening of institutions and policy measures that go beyond the conventional in tackling capital flight.

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“…In the case of Thailand, changes in macroeconomic factors such as exchange rate improved the agricultural sector performance. Likewise, Adekunle and Ndukwe (2018) observed that changes in exchange rate, interest rate and other macroeconomic factors have considerable impact on Thailand 's agricultural sector. However, the downward trend of agricultural sector revealed can be ascribed to the influences of some of these macroeconomic factors.…”

Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 99%

The contribution of macroeconomic factors in determining the economic growth, export and the agricultural output in agri-based ASEAN economies

Chetthamrongchai¹,

Somjai²,

Chankoson³

2020

JESI

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The prime objective of the study can be looked at from the theoretical and practical perspectives thereby predicated on the researcher's strong will to contribute to the body of knowledge by analyzing the economic impact of government spending on agriculture, unemployment rate, and crude oil price in the context of agriculture sector of non-oil for economic growth. Moreover, with the aims to bridge the literature gap in the knowledge of macroeconomic factors on the agriculture in Thailand; since the non-oil export has the potential of growth in terms of sales, profitability, rate of earnings and productivity if the factors militating against the non-oil exports are addressed. The ARDL method is employed to answer the research questions. The findings of the study ha highlight the fact that the this is not only to increase the agricultural sector's contribution to GDP but can also help to cushion the effect of price shocks in the international oil (crude oil) market and promote non-oil export. In addition, to improve the outlook of other non-oil sectors such as the manufacturing sector where agricultural outputs are being required. Thus, important macroeconomic factors like the interest rate, agricultural land, unemployment rate, agricultural export, crude oil price, inflation rate, government spending, openness and exchange rate will be considered in the study.

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

Cited by 10 publications

References 10 publications

Financial Sector Liberalization and Agricultural Sector Output: Fresh Evidence From Nigeria

Financial Sector Liberalization and Agricultural Sector Output: Fresh Evidence From Nigeria

Asymmetric effects of capital flight on domestic investment in Nigeria: evidence from non-linear autoregressive distributed lag model

The contribution of macroeconomic factors in determining the economic growth, export and the agricultural output in agri-based ASEAN economies

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